10 Feb 2014
China's credit crackdown hits international clients
FXStreet (Bali) - In an article written by Financial Times's Henny Sender, the Chinese credit crackdown is starting to have a growing impact on overseas clients, with China Development Bank reportedly asking international clients to postpone drawing down on promised credit lines.
Financial Times article - Key Quotes
"This crackdown has been aimed in large part at the country’s shadow banks – lightly regulated lending institutions that serve risky clients."
"CDB and Export-Import Bank of China, another state-owned lender, have shown greater willingness to put international borrowers into bankruptcy and sell their assets on the international market in an attempt to recover value from failed loans."
"The lending cutbacks and more aggressive loan management by CDB and Eximbank are indications of how the Chinese government’s attempt to clean up shadow banking by raising interbank rates is affecting the heart of its financial system."
Financial Times article - Key Quotes
"This crackdown has been aimed in large part at the country’s shadow banks – lightly regulated lending institutions that serve risky clients."
"CDB and Export-Import Bank of China, another state-owned lender, have shown greater willingness to put international borrowers into bankruptcy and sell their assets on the international market in an attempt to recover value from failed loans."
"The lending cutbacks and more aggressive loan management by CDB and Eximbank are indications of how the Chinese government’s attempt to clean up shadow banking by raising interbank rates is affecting the heart of its financial system."