The coronavirus could cripple China's economy for longer than Wall Street wants to believe - Business Insider

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Opinion | The coronavirus could cripple China's economy for longer than Wall Street wants to believe By lopezlinette.

It is no surprise, then, that the creditworthiness of the Chinese banking system has been trending downward, especially at the lower end.Because of the coronavirus, this weakened banking system — less than one year out from being on a bit of a brink — will now have to forgive loans for companies large and small and continue financing local governments dealing with the fallout from stagnating economies and the effort to fight the coronavirus.

China's Great Wall of Debt: Shadow Banks, Ghost Cities, Massive Loans and the End of the Chinese Miracle And then, of course, even if the banks could forgive loans and ease credit conditions, that would only do so much. Some businesses simply may not be creditworthy after this economic shock.

 

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SScalpings lopezlinette no one knows.

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