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Mid-tier Chinese banks piling up trillions of dollars in shadow loans

The loans rose to an estimated US$1.8 trillion in the first half of 2015, or 16.5% of all commercial loans in China: UBS

The practice comes at a time when some lenders, under pressure from China's slowest economic growth in 25 years, are already delaying the recognition of bad loans.


MID-TIER Chinese banks are increasingly using complex instruments to make new loans and restructure existing loans that are then shown as low-risk investments on their balance sheets, masking the scale and risks of their lending to China's slowing economy.

The size of this...