China clamps down on lending

Author: | Published: 24 Aug 2017

After a months-long clampdown on PRC corporates and their excessive outbound M&A transactions, Chinese authorities have shown they are determined to tackle the roots of such a shopping spree: the banks that have been extending loans to these M&A hungry companies.

The China Banking Regulatory Commission moved in mid-June to require a group of active lenders, among them Industrial & Commercial Bank of China, China Construction Bank and Bank of Communications, to conduct a risk analysis...