China regulator warns of lending risk to cyclical industries

03/25/2013 | Caijing Magazine online · China Daily (Beijing)

Cyclically sensitive industries such as property, engineering and steel may pose a danger to China's financial sector due to the industries' exposure to excessive debts and leverage and overcapacity, warned the China Banking Regulatory Commission, which also cautioned about lending to companies with complex structures. Separately, the CBRC ordered banks to "purge" troublesome wealth management products after a wave of earlier defaults. Banks have been asked to submit reports on the products by the end of June.

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Caijing Magazine online · China Daily (Beijing)

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