You are here

Contagion risks rise as China lenders fund one another's loans

Shanghai Pudong Development Bank Co's first-half earnings showed its short-term borrowings and repurchase agreements surged by 75 per cent in the past three years.


CHINA's smaller banks have never been more reliant on one another for funding, prompting rating companies to warn of contagion risks in any crisis.

Wholesale funds, including those raised in the interbank market, accounted for a record 34 per cent of small and medium-sized...