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"Bad debts in China are increasing significantly faster than what the Chinese central bank reports, according to a prominent Chinese banking analyst.
A report in the Financial Times said that analyst Charlene Chu believes that China's accumulation of bad debts is $US6.8 trillion higher than the official government figures.
That's more than five times higher than the value of loans which are officially reported as either non-performing or one level above non-performing.
If total non-performing loans really are $US7.6 trillion, it would imply a bad debt ratio of 34%. Chinese government statistics at the end of June reported a bad debt ratio of 5.3%."
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