China Bad-Loan Level Seen Understated After Economy Slows
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China’s bad-loan ratio may have been understated by at least a third in the second quarter as an economic slowdown weakened borrowers’ ability to repay debts.
The level may have been 1.5 percent or above, China Orient Asset Management Corp. said in a report yesterday, citing its survey of 64 local bank executives. That compared with an official number of 1.08 percent.