Warning Indicator for China Banking Stress Climbs to Record

September 18, 2016 10:39 AM

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Warning Indicator for China Banking Stress Climbs to Record

A warning indicator for banking stress rose to a record in China in the first quarter, underscoring risks to the nation and the world from a rapid build-up of Chinese corporate debt.

China’s credit-to-gross domestic product “gap” stood at 30.1 percent, the highest for the nation in data stretching back to 1995, according to the Basel-based Bank for International Settlements. Readings above 10 percent signal elevated risks of banking strains, according to the BIS, which released ...

Also read: UPDATE 1-China banks agree debt restructuring deal with Sinosteel -Bank of China

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