And worse, loans to property developers are doomed to sour as sales slow.
According to Bloomberg’s sources, “China’s banking regulator warned lenders that some projects backed by local governments may run out of funds, and loans to property developers are likely to sour as sales slow.”
The China Banking Regulatory Commission told lenders last week to step up asset sales and debt restructuring for unprofitable local government financing vehicles that are struggling to repay loans, noted Bloomberg.
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