ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintIcon Twitter
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.

Discover the all new Nikkei Asia app

  • Take your reading anywhere with offline reading functions
  • Never miss a story with breaking news alerts
  • Customize your reading experience

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