China bad loans surge by most since 2005

Shanghai

CHINA'S bad loans jumped by the most since 2005 in the third quarter, fuelling concern that a cooling economy will be further weakened as banks limit lending to avoid credit risks.

Non-performing loans rose 72.5 billion yuan (S$15.4 billion) from the previous quarter to 766.9 billion yuan, the China Banking Regulatory Commission said on Nov 15. Soured credit accounted for 1.16 per cent of lending, up from 1.08 per cent three months earlier.