Posted on 07/14/2021 5:44:59 PM PDT by SeekAndFind
BEIJING—Chinese banks are facing the threat of rising bad loans in the future as the current economic recovery is unbalanced and lacks a solid foundation, the country’s top banking and insurance watchdog said on Wednesday.
Outstanding non-performing loans in the banking sector stood at 3.5 trillion yuan ($540.79 billion) by end of June, an increase of 108.3 billion yuan ($16.7 billion) from the beginning of the year, while the bad loan ratio declined to 1.86 percent, Liu Zhongrui, an official at the statistics department of China Banking and Regulatory Commission (CBIRC), told reporters in Beijing.
China has implemented monetary and fiscal policies since last year to support an economy jolted by the COVID-19 pandemic. Financial institutions were encouraged to lower rates for virus-stricken firms, and relief measures were rolled out to give borrowers breathing space during the crisis.
The regulator has been guiding banks to increase provisions and ramp up disposals of bad assets, said Liu, with the size of bad loans disposed of in the first half expected to be larger than that in the same period last year, said Liu.
Chinese banks are expected to see an increase in profit growth in the first half of this year due to a low comparison with the previous year when the COVID-19 pandemic disrupted businesses, Liu said.
Total assets of the banking sector rose 9.2 percent year-on-year to 328.8 trillion yuan ($50.8 trillion) by the end of June, while total liabilities grew 9.1 percent to 301 trillion yuan ($46.5 trillion), the regulator said.
The regulator also saw the growth of property loans decline to 10.3 percent as the government curbs financing in the overheated sector to prevent risks.
(Excerpt) Read more at theepochtimes.com ...
China may have to go to war somewhere to pressure valve their failing economy and loot some country.
The so-called recovery is a myth, deflation lurks.
Bankruptcy process in China
The bankruptcy process in China is governed by the competent Chinese court located in the areas where the company is incorporated. The aim of the procedure is to satisfy the claims of the creditors in case the debtor is no longer able to pay his debts. For this purpose, the creditors can legally request that all the assets of the bankrupt Chinese company are seized and distributed accordingly. This can also apply to the assets of the debtor that are not located in China. The application for bankruptcy can be filed by the debtor himself (in this case it is voluntary) or by the creditor or creditors. When the bankruptcy proceedings are filed against a debtor, he is entitled to be informed that the procedure was commenced, within approximately five days.
The most common expenses associated with the bankruptcy proceedings in China will include the court costs, the expenses associated with the distribution of assets and the expenses for the bankruptcy administrator, the appointed individual who will oversee the development of the process.
https://www.lawyerschina.net/bankruptcy-in-china
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