China's already started bailing out its banks, says UBS
Abu Dhabi
THE good news is that the capital raises have begun. The bad news is that they need to continue.
An analysis of 765 banks in China by UBS AG shows that efforts to clean up the country's debt-ridden financial system are well underway, with as much as 1.8 trillion yuan (S$364 billion) of impaired loans shed between 2013 and 2015, and 620 billion yuan of capital raised in the same period. But the work is far from over, as to reach a more sustainable debt ratio the Chinese banking sector will still require up to 2 trillion yuan of additional capital, as well as the disposal of 4.5 trillion yuan worth of bad loans, according to the Swiss bank's estimates.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
International
South Korea’s probe alleges 211.2 billion won of illegal short trades
Suzhou Industrial Park: The crown jewel of China-Singapore relations celebrates its 30th year
Top US Treasury official to travel to Singapore, Malaysia to discuss sanctions
Saudi Arabia posts budget deficit of US$3.3 billion in first quarter
Microsoft bets big on South-east Asia, pledges billions in AI and cloud investments
RBA to keep key rate at 12-year high as inflation stirs anew