Asia Times
William Pesek August 14, 2018 1:09 PM
[excerpt]
http://www.atimes.com/article/chinas-bad-loan-solution-looks-like-japans-non-solution/The record surge in Chinese banks’ bad loans is a financial Rorschach test if ever there were one. The Rorschach test analyses subjects’ varying interpretations of ink blots. While some may see – say – a bull, others may see a bear.
Those who believe President Xi Jinping is boldly pushing ahead with deleveraging will see the $27 billion jump in non-performing loans in the second quarter as a bullish rather than a bearish signal. Granted, things will look grave as CEOs cop to the magnitude of dodgy assets, but through this prism, banks are becoming more transparent by reclassifying debt that is delinquent for more than 90 days.
Bears will see the rise to $285 billion by the end of June as a setback for Xiconomics. To skeptics, it’s a warning sign that authorities are claiming to curb excesses while, under the radar, prodding lenders to extend new loans likely to go bad.
