Household debt and the shadow banking market in China

CHINA ADVISORY - Report 03 Jul 2020 by Andrew Collier

China’s recovery will depend on the ability of households to continue to consume. However, over the past several years, household debt has climbed steadily. This particularly includes mortgage debt. Meanwhile, investments in shadow banking through Wealth Management Products have remained at high levels. This is a risk as some shadow loans are not guaranteed by the banks and a decline in value will impact the ability of the households to repay their loans. Those that are not guaranteed.

Household loans have almost doubled in ten years as a portion of total lending. We can compare to the US mortgage lending as a percentage of GDP prior to the financial crisis, which exhibited a lower percentage growth.

Now read on...

Register to sample a report

Register
Sign-in
Forgot your password?
Copyright 2024 GlobalSource Partners. All rights reserved. This report is prepared for GlobalSource Partners’ clients and may not be redistributed, reproduced, stored in a retrieval system, retransmitted or disclosed, in whole or in part, or in any form or manner, without the express written consent of GlobalSource Partners. This report is distributed simultaneously to our website and other portals used by GlobalSource Partners. The information herein was obtained from various sources and is believed to be reliable but GlobalSource Partners does not warrant its completeness or accuracy. Neither GlobalSource Partners nor any Country Analyst, officer or employee accepts any liability whatsoever for any direct, indirect or consequential damages or losses rising from any use of this report or its contents.