Chinese banks are starved of capital following a massive lending spree and still needing to pay...

|By:, SA News Editor

Chinese banks are starved of capital following a massive lending spree and still needing to pay their largest shareholder (the gov't) big dividends. A decade after going public, the banks remain arms of the government, making loans when and where it suits officials, and incredibly reporting a troubled loan rate of just 1.15%. "There's an awful lot of money just going round and round ... giving the appearance of strength when it's really not there," says Fraser Howie.