fitch warns of rising china credit risk
Last Updated : GMT 06:49:16
Arab Today, arab today
Arab Today, arab today
Last Updated : GMT 06:49:16
Arab Today, arab today

Fitch warns of rising China credit risk

Arab Today, arab today

Arab Today, arab today Fitch warns of rising China credit risk

Taipel - Spa

Fitch Ratings said Thursday that China's credit risk has increased because local governments have become heavily indebted, with a lack of disclosure by financial institutions compounding the problem, according to AP. The comments by Fitch, one of the three major credit rating agencies, come amid concerns that borrowings by local authorities in China for expensive public works may overwhelm the ability of some local governments to repay banks. Senior Director Jonathan Lee of Fitch Ratings in Taiwan said a large chunk of the lending has gone into unprofitable infrastructure, raising the prospect of default. "Credit risk has risen from an over-extension of loans to local governments and property - both of which have questionable medium-term repayment capacity," Lee said during a conference in Taipei. Chinese local governments borrowed heavily over the past decade to build subways and other infrastructure that the central government in Beijing initially promised to fund but then pulled out of. Borrowing by local governments increased after Beijing ordered higher spending on public works as part of its economic stimulus to fend off the 2008 global crisis. In June, Beijing revealed that local governments have piled up 10.7 trillion yuan ($1.6 trillion) in debt, the equivalent of 25 percent of China's annual economic output. Lee also highlighted concerns about Chinese banks moving to offload the local loans. He said the process of bundling the debts into securities continues to grow, which is transferring the credit risk to a broader group of investors. "Disclosure is very poor, and there is no legal framework guiding (these activities), which means that unwinding products in the event of default could get very messy," he said.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

fitch warns of rising china credit risk fitch warns of rising china credit risk

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

fitch warns of rising china credit risk fitch warns of rising china credit risk

 



GMT 09:27 2017 Monday ,13 February

Wahat Al Karama opens doors to public

GMT 03:42 2017 Sunday ,07 May

Kanye West exits social media

GMT 10:22 2017 Tuesday ,31 October

China agency denies dead model

GMT 14:57 2017 Monday ,30 October

NATO chief calls N. Korea 'global threat'

GMT 04:22 2018 Thursday ,20 September

German Pavilion to engage, inspire at Expo 2020

GMT 21:51 2016 Tuesday ,06 September

Darfur celebrates end of transitional authority

GMT 10:43 2014 Saturday ,31 May

Wonderful boys bedrooms interior design

GMT 07:45 2016 Monday ,22 August

Anti-Israel military parade staged in S Gaza strip

GMT 16:48 2017 Monday ,11 September

Arab actors managed to overcome challenge of addiction

GMT 10:59 2016 Tuesday ,01 November

China aircraft market to hit nearly $1tn in 20 years
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday