China's financial support not working as planned, analysts say

Aid to small and midsize companies forces high risk and low interest onto banks

The coronavirus outbreak has hit small businesses especially hard, with most saying they are suffering a severe cash crunch.

HU YUE and TANG ZIYI, Caixin

February 10, 2020 15:45 JST

China's financial regulator has ordered banks to lower interest rates and allow late repayment of loans to help small and midsize companies hurt by the coronavirus outbreak.

However, the measures are not working as intended, bankers and analysts say, as the move could heighten financial risk in the banking sector and add to small business debt.