Troubled China Credit Could Cost Banks $1.7 Trillion, S&P Says

  • Ratio of problem credit could triple to 17% by 2020: S&P
  • Growth rate of China’s debt ‘not sustainable for long’

The warning adds to a drumbeat of concern over a surge in Chinese corporate credit since the global financial crisis.

Photographer: Qilai Shen/Bloomberg

S&P Global Ratings said China’s banks may need to raise as much 11.3 trillion yuan ($1.7 trillion) of fresh capital from 2020 because of troubled credit, should a corporate debt binge fail to slow.

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