China is implementing a flurry of regulations to manage its non-performing loan (NPL) crisis. The IMF estimates the country's non-financial sector debt will exceed 290% of GDP by 2022, up from 235% in 2016. According to one of the country's four national state-owned asset management companies China Orient Asset Management, NPLs reached RMB1.7 trillion ($270 billion) at the end of 2017 and are expected not to stop growing until 2019 at the earliest. The emergence of zombie banks lending to zombie companies has exacerbated the problem.
March 05 2018