China Banks’ Asset Deterioration ‘Near Certainty,’ Fitch Says
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Chinese banks’ surge in loan growth since late 2008 has raised their exposure to credit risk and future asset quality deterioration is “a near certainty,” according to Fitch Ratings.
The majority of new loans have gone to local government projects and real estate and both have “questionable returns over the medium-term,” Charlene Chu, a Beijing-based director at Fitch, said in a statement today.