Skip to content

China Banks Rush to Raise Record Debt as Credit Losses Mount

  • Lenders, governments selling more bonds to raise capital
  • Financial institutions feel pinch of economic woes: official

Chinese banks are rushing to boost capital as they prepare for a potential spike in bad loans due to the economic slowdown and spreading housing crisis. 

A record amount of fresh money has come from financial markets, with banks selling 29% more bonds in the first half of the year compared to last year to replenish capital and cover credit losses. Local authorities also provided funds from government bond sales to help cash-strapped regional lenders.