Brokerage CLSA Sees China Bad Loan with $1 Trillion of Losses
According to an assessment by brokerage CLSA Ltd, Chinese banks’ bad loans are at least nine times bigger than official numbers indicate, which points to potential losses of more than $1 trillion.
“ The IMF said last month that the nation may have $1.3 trillion of risky loans, with potential losses equivalent to 7 percent of gross domestic product.”
Potential losses could range from 6.9 trillion yuan ($1.1 trillion) to 9.1 trillion yuan, according to a report by brokerage. The estimates are based on public data on listed companies’ debt-servicing abilities and make assumptions about potential recovery rates for bad loans. The IMF said last month that the nation may have $1.3 trillion of risky loans, with potential losses equivalent to 7 percent of gross domestic product.
About CLSA Brokerage
CLSA is Asia’s leading and longest-running independent brokerage and investment group. The company provides equity broking and execution services, corporate finance and asset management services to global corporate and institutional clients.
Renowned for service excellence, product innovation and award-winning market intelligence, CLSA has been an unconflicted provider of research, sales and trading since 1986. CLSA has built its reputation on its unrivalled equity research and economic analysis, which is consistently ranked the best in Asia. With exchange memberships in every developed market in Asia and the USA, together with a dedicated team of experienced sales traders, CLSA is committed to delivering the best execution.
Visit: CLSA Brokerage
The Wealth Insider is the world’s leading wealth intelligence for global wealth managers, investments managers, asset managers, high net-worth service providers and wealthy individuals. Our global workforce seamlessly present the inside news of the most relevant news, insights, global wealth trends, innovation & digital transformation to our global audience.
Get The Wealth Insider Daily
- For Press Release, please contact firstname.lastname@example.org
- For Media-related enquiries, please contact email@example.com
- For Advertisement, please contact our official ad agency