On the heels of Ernst & Young?s misleading China bad debt report comes a new report from Fitch Ratings, reported on in MarketWatch, that claims that China?s financial system could face $220 billion in losses due to bad loans.
“This figure is close to one-third larger than the stock of capital in the entire banking system, underscoring the extent of asset quality weakness that still remains,” said Charlene Chu, the report’s author.
China has been suspect of, and sensitive to, reports of its out of control bad debt problem. It remains to be seen how long the Fitch report remains current and accurate.
You can read more about this story at Bad loans may cost China $220 bln: Fitch.
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