China’s banks worry about the speculative bubble

Zhang Jianguo.jpgThis year, China has been the one place in the world where almost anyone can get a loan. But now, it seems policy is about to change.
Zhang Jianguo, president of the 2nd largest bank, China Construction, has announced a 70% cut in H2 lending to Rmb 200bn ($29bn), “to avert a surge in bad debt”.
Zhang also confirmed the blog’s own worries about the speculative bubble that has developed, saying that “we noticed that some loans didn’t go into the real economy and feel that some industries are expanding too rapidly”.

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