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HomeEconomyChina banks rush to raise debt as slowdown hikes potential bad loans

China banks rush to raise debt as slowdown hikes potential bad loans




Chinese banks are rushing to boost capital as they prepare for a potential spike in due to the and spreading housing crisis.


A record amount of fresh money has come from financial markets, with banks selling 29% more bonds in the first half of the year compared to last year to replenish capital and cover credit losses. Local authorities also provided funds from government bond sales to help cash-strapped regional lenders.


China’s grew at the weakest pace in more than two years in the second quarter due to Covid lockdowns and a protracted housing market downturn, stoking worries about an increase in companies and individuals who cannot repay . Those fears deepened recently when hundreds of thousands of home owners said they would stop paying the mortgage on houses…

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