Non-performing loans at many mid-tier Chinese banks continue to rise in 2020. The deterioration of loan books across the country’s financial sector is not a new phenomenon, but will likely accelerate in the wake of China’s recent COVID-induced downturn. The country’s government is likely to cut back on deleveraging of the financial system to focus on increased lending and economic growth. Total lending was up by 20% in the first quarter, even as banks deferred more than $120 billion worth of repayments.
Related ETF: Global X MSCI China Financials ETF (CHIX)
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