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When will China's big 4 banks begin to recognize what must surely be increasing levels of...

When will China's big 4 banks begin to recognize what must surely be increasing levels of nonperforming loans? Essentially government arms, the lenders have been pushed to make loans to local governments for favored, but not necessarily economic projects. China Merchants Bank (the nation's 6th largest) reported an NPL ratio of 0.56%, unchanged from last year. "Hilarious," tweets Patrick Chovanec.
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  • divinecomedy
    , contributor
    Comments (466) | Send Message
     
    Not hilarious, the debt will be transferred to the government so NPL for the banks should be zero while the NPL for government obviously is rocketing to "infinity and beyond". Actually anyone who's read the book Red Capitalism already knows this.
    22 Aug 2012, 03:22 AM Reply Like
  • Tony Petroski
    , contributor
    Comments (6373) | Send Message
     
    "...the lenders have been pushed to make loans to local governments for favored, but not necessarily economic projects."

     

    Have our Nobel laureates Krugman and Obama been informed of this? Are the Chinese really all that clever with their bullet trains and their far-seeing infrastructure projects? Aren't they really one big Solyndra?
    22 Aug 2012, 08:06 AM Reply Like
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