Chinese banking giants report more bad loans

China’s four largest state banks reported an increased proportion of bad loans in the first half.
For example, non-performing loans rose to a share of 1.55 percent in late June for the Industrial and Commercial Bank of China, the world’s largest lenders. That compares with 1.5 percent at the end of last year, writes AFP.

While the other three major banks have reported similar increases in recent days. Bank of China showed an increase from 1.43 to 1.47 percent. Last week, reported the China Construction Bank, the country’s second largest lender, an increase of 0.05 percentage points to 1.63 percent.

For the Agricultural Bank of China the figure is 2.40 percent. Earlier in the summer, said China’s regulator of the banking sector to the country’s banks have written down more than $ 300 billion in bad loans over the past three years.

All categories,China

Female Chinese students ‘asked to hand over nude photos to secure loans’

Female students in China are providing nude pictures as collateral for loans, according to reports.

According to state media, some university students have sent photographs of themselves naked, holding identification cards, to potential lenders, in order to obtain higher loan amounts.

The loan sharks threaten to send the pictures to their parents or publish them online if they fail to repay the loan on time, reports said.

The students are often required to pay extremely high interest rates as part of the arrangement.

One student borrowed 120,000 yuan (£12,870), but she found her debt had increased to double that within four month.

She then had to borrow money from her parents to pay back half of the loan after she was threatened that the pictures would be posted online

Another student borrowed 500 yuan (£54) at an interest rate of 30 per cent per week, the Southern Metropolis Daily said. The student found the loan shark on peer-to-peer lending platform Jiedaibao.

It is unclear how widespread the practice is on the Chinese internet, but Jiedaibao told the Shanghai based Sixth Tone outlet it had launched an investigation.

Loans are difficult for students to obtain in China and the wider industry is largely under-regulated.

Comments on China’s Internet on Wednesday were largely divided, with many criticising the loan sharks, while others said the students were to blame for chasing money.

“It’s stupid to send nude photos,” said one post on Sina Weibo, China’s version of Twitter.

“The girl is so naive and stupid. I wonder how she is able to enter the university.”

Another post said: “This is notorious now, but it is still operating. Doesn’t it break the law?”

All categories,China

China – Its Global Economy and Favored Chinese Language

China is emerging as one of the strong global economy since the last two decade and is the world’s biggest holder of foreign exchange reserves with the reserves touching 1.2 trillion US dollars few months back (March, 2007). Many countries around the world are interested in business with China and are actively involved in learning Chinese language to understand and enhance the business opportunities.

Napoleon Bonaparte has once said that “China is the sleeping giant. Let her lie and sleep for when she awakens she will tremble the world.” Nearly two century after the visionary statement of the legend, China’s dormant economy emerged so drastically that economic power that country holds now directly affects and facilitates the pace of global market.

All categories,China