You are here

China's credit engine is running out of gas as debt risk goes up

As leaders signal tighter monetary policy to reduce risks and keep the yuan stable, funding levels take a hit

With the People's Bank of China scaling down credit risk, funding remains a challenge for small businesses, with nearly 60 per cent reporting shortfalls in December, according to China's National Bureau of Statistics.


THE People's Bank of China (PBOC) faces a reckoning after revving up its credit engine for years.

Three conditions suggest traditional financing and shadow banking are due to cool: Restrictions on property markets are poised to start weighing on mortgage issuance; bond...

Market voices on: