Rising yields prompt China banks to up loan-loss coverage

Domestic and foreign lenders reassessing loan books and tweaking hedging strategies

Hourglass
Time may be running out for China corporates to roll over debt

A toxic combination of rising bond yields, looming maturities and refinancing difficulties are forcing domestic and foreign banks to reassess their China debt exposure and reshape their credit risk management strategies.

China’s financial authorities have embarked on a deleveraging drive to reduce the amount of risky lending by domestic banks, which is squeezing the borrowing capacity of the country’s corporates. Attempts by firms to plug any funding gaps via the shadow banking sector may meet

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