2016-08-14bloomberg.com

International Monetary Fund staff said that 19 trillion yuan ($2.9 trillion) of Chinese "shadow" credit products are high-risk compared with corporate loans and highlighted the danger that defaults could lead to liquidity shocks.

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The commentary highlighted the potential for risks bigger to the nation's financial stability than from companies' loan defaults. While loan losses can be realized gradually, defaults on the shadow products could trigger risk aversion that's harder to manage, the report said.



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