Big Worry For China! High debt catches attention of agencies
"While China`s lending traditionally comes from the major state-controlled banks, there has been a gradual shift towards less transparent alternative lending sources that can produce high-risk loans and contribute to China`s debt woes. This lending is at times done through smaller local and provincial banks that sell lightly regulated investments," wrote ChinaPower.
As China's economy contracted by 6.8 per cent in the first quarter of 2020 and its unemployment rate touched 6.2 per cent in April, Photo: Reuters