sharon sanders
Editor-in-Chief & President
Evidently China has an underground economy.
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Fitch Ratings lowered its outlook on China?s AA- long-term local-currency rating to ?negative? from ?stable,? citing a ?high likelihood of a significant deterioration? in banks? asset quality within three years.
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Bad loans could rise to 15 percent to 30 percent of the total, with concern at the quality of lending compounded by growth in off-balance-sheet credit, Fitch said.
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?Fitch has documented a proliferation of off-balance sheet and other more or less informal channels through which credit is being extended to the economy,? Andrew Colquhoun, head of Fitch?s Asia-Pacific sovereign unit, told a conference call today. ?This gives rise to concerns that the effectiveness of monetary policy may be decreasing.?
more..
http://www.bloomberg.com/news/2011-...ting-may-be-cut-by-fitch-on-private-debt.html
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Fitch Ratings lowered its outlook on China?s AA- long-term local-currency rating to ?negative? from ?stable,? citing a ?high likelihood of a significant deterioration? in banks? asset quality within three years.
snip
Bad loans could rise to 15 percent to 30 percent of the total, with concern at the quality of lending compounded by growth in off-balance-sheet credit, Fitch said.
snip
?Fitch has documented a proliferation of off-balance sheet and other more or less informal channels through which credit is being extended to the economy,? Andrew Colquhoun, head of Fitch?s Asia-Pacific sovereign unit, told a conference call today. ?This gives rise to concerns that the effectiveness of monetary policy may be decreasing.?
more..
http://www.bloomberg.com/news/2011-...ting-may-be-cut-by-fitch-on-private-debt.html