China May Have $1.3 Trillion of Risky Loans, IMF Report Shows
- Potential loss may be $756 billion yuan, 7 percent of GDP
- IMF urges `prompt action' to address corporate weakness
Pedestrians holding umbrellas walk as the Oriental Pearl Tower, right, stands illuminated at night in the Lujiazui district of Shanghai, China.
Photographer: Qilai Shen/BloombergThis article is for subscribers only.
China may have $1.3 trillion loans extended to borrowers that don’t have sufficient income to cover interest payments, with potential losses equivalent to 7 percent of the country’s gross domestic product, according to the International Monetary Fund.