Local debt NPL problems to loom by '13: Poll

    Updated: 2011-09-20 10:48

    By Lan Lan (China Daily)

      Comments() Print Mail Large Medium  Small 分享按鈕 0

    Local debt NPL problems to loom by '13: Poll

    A booth at the China International Financial Exhibition 2011 in Beijing. The ratio of non-performing loans of local financing vehicles is likely to reach as high as 15 percent. [Photo/China Daily]

    BEIJING - China's local financing vehicles could face the rising risk of bad loans and major problems might emerge as early as 2013, a report by a major Chinese asset management company released on Sept 19 said.

    The non-performing loan (NPL) ratio of local financing vehicles - investment companies through which local governments raise funds to circumvent regulations that prevent them from borrowing directly - is likely to reach as high as 15 percent, exceeding 1 trillion yuan ($156 billion), according to China Orient Asset Management Co.

    The report surveyed 234 institutional respondents, including commercial banks, asset management companies, investors and intermediary agencies.

    About 84 percent of those surveyed at commercial banks said the local financing vehicles would encounter a major NPL problem.

    About 57 percent reckoned that this would occur in 2013 while roughly 25 percent said this might happen in 2012, according to the report.

    Intermediary agencies were more pessimistic: About 98 percent of the respondents said a concentration of bad loans would occur, and half of them said it would happen in 2012.

    No respondents said the local government debt problem would reach a dangerous level this year.

    The average forecast NPL rate is about 15 percent, with the scale of the bad loans expected to exceed 1 trillion yuan, the report said, citing survey results.

    China's local government debts were 10.7 trillion yuan at the end of 2010, equal to about 27 percent of gross domestic product, according to a report by the National Audit Office in late June.

    Senior government officials said last month that government debts are "controllable" and there is little chance for a potential government default, as regulators at all levels are taking active measures to tackle the issue.

    Under pressure

    Guo Tianyong, a professor with the Central University of Finance and Economics, said banks are under pressure to resolve the high level of bad loans.

    "The risks of local financing vehicles are uncertain and it's hard to say whether the ratio will reach 15 percent, but stringent control of the incremental debt of the local governments is crucial," Guo said.

    He said the high rate of bad loans had become a hurdle to the competitiveness of the banking system, and the credit risks of commercial banks should be seriously addressed.

    The survey indicated that commercial banks' bad loans would dramatically increase after 2012, reflecting China's stimulus spending as it sought to fight the effects of the global financial crisis.

    About 73 percent of the respondents at commercial banks said that bad loans generated by the enormous increase in new loans in the past two years will emerge in concentration in 2012 or thereafter. Major sources of NPLs will be local financing vehicles, even though the loans were related to high-speed railways, steel and new energy industries, it said.

    "China launched a 4 trillion yuan stimulus plan in 2008 to cope with the financial crisis, and the high speed of economic growth was sustained in 2009 and 2010 by enormous credit and investment", but this was eventually reflected in rising inflation in 2011, said the report.

    亚洲中文字幕无码不卡电影| 最好看的最新高清中文视频| 最新版天堂资源中文网| 777久久精品一区二区三区无码| 免费精品久久久久久中文字幕| 国产日产欧洲无码视频无遮挡| 国产色爽免费无码视频| 中文字幕一区视频| 日韩乱码人妻无码中文视频| 无码AV片在线观看免费| 中文字幕精品久久久久人妻| 亚洲人成中文字幕在线观看| 免费无遮挡无码视频在线观看| 无码人妻久久一区二区三区免费 | 无码人妻一区二区三区兔费 | 亚洲中文字幕视频国产| 亚洲中文字幕在线观看| 国产精品多人p群无码| 亚洲第一极品精品无码久久| 人妻少妇看A偷人无码电影| 天堂中文在线资源| 无码中文av有码中文a| 亚洲av中文无码| 无码人妻丰满熟妇区五十路| 国产精品无码素人福利| 国产亚洲精久久久久久无码| 无码无套少妇毛多18PXXXX| 亚洲中文字幕不卡无码| 中文字幕人妻无码一夲道| 五月丁香啪啪中文字幕| xx中文字幕乱偷avxx| 最近中文字幕完整版免费高清| 日本免费在线中文字幕| 日韩中文在线视频| 中文字幕日韩一区二区三区不卡| 日本精品久久久久中文字幕| 最近2019年中文字幕一页| 精品久久久无码中文字幕| 中文字幕日韩第十页在线观看| 天堂Aⅴ无码一区二区三区| 成在人线av无码免费高潮喷水|