Fitch Ratings sounds China debt warning
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China.org.cn, August 31, 2011
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Fitch has estimated that total new financing, including lending by non-bank financial institutions, hit 18 trillion yuan ($2.8 trillion) in 2011.?[Photo/eastmoney.com] |
There are warning signal coming from the Chinese banking system, according to a report published by Fitch Ratings Tuesday.
Fitch Ratings also warned that 16 Chinese banks would face a downgrade of their viability ratings due to asset quality risks.
The rapid growth of new lending in China has fuelled inflation and sent property prices soaring.
Fitch has estimated that total new financing, including lending by non-bank financial institutions, hit 18 trillion yuan ($2.8 trillion) in 2011.
In April, Fitch downgraded its outlook on China's local currency rating from "stable" to "negative" due to concerns over a huge rise in potentially destabilising debt since the end of 2008.
