China: Billions in bad loans

Will China's non-performing loans amount to $900 billion this year? Here's what Hong Kong-based blogger Milton J. Madison has to say:

“Knowing what I do of the Chinese banking industry, it does not surprise me that the auditor of 2 of the largest 4 banks in China estimates that NPLs are either much higher than officially stated or expect them to rise dramatically over the near-term. Basically, Chinese banks haven't a clue how to make loans and they do very little follow-up after they are made…We cannot rely upon the party accomplices that run these organizations to give us an honest answer, the Central Bank doesn't want to tell the truth before selling another stake to unwitting foreign investors and the Chinese themselves do not want to hear that their hard earned savings as deposits in the institutions could potentially be at risk!”

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