ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon Print
Economy

China's mountain of bad debt climbs 10% in 6 months

Smaller banks buckle under weight of poor loans amid economic slowdown

Nearly 5% of all lending in China stands in default, or close to it.   © Reuters

HONG KONG -- Nonperforming loans in China grew 10% during the first half of 2019 to 2.24 trillion yuan ($313 billion), with more small and midtier companies failing to keep up with their debts.

Almost 5% of all lending in China is in default or close to it, once the 3.63 trillion yuan of subperforming loans -- typically referring to overdue loans that are not in default -- are included as well. The burden weighs especially on smaller banks that lack the same troves of cash as their state-backed compatriots.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more