China’s bad data can be a good thing


  • Business
  • Saturday, 15 Jun 2019

Studied ambiguity: People playing checkers outside a Baoshang Bank Co branch in Beijing. One of the reasons non-performing loan ratios are so low is because the really risky stuff is hidden in shadow banking assets, as appears to be the case with Baoshang. — Bloomberg

There’s a good reason why China’s banking regulator just issued a statement insisting its small and mid-size banks were stable: Investors don’t believe the numbers that are telling them the same thing. In this particular case, though, bad data may actually be good policy.

Authorities themselves prompted recent jitters by seizing Inner Mongolia-based Baoshang Bank Co at the end of May, despite the fact that it supposedly carried a lower level of bad loans than China’s banking system as a whole.

Limited time offer:
Just RM5 per month.

Monthly Plan

RM13.90/month
RM5/month

Billed as RM5/month for the 1st 6 months then RM13.90 thereafters.

Annual Plan

RM12.33/month

Billed as RM148.00/year

1 month

Free Trial

For new subscribers only


Cancel anytime. No ads. Auto-renewal. Unlimited access to the web and app. Personalised features. Members rewards.
Follow us on our official WhatsApp channel for breaking news alerts and key updates!
   

Next In Business News

Malaysia-Japan trade set to rise this year - Tengku Zafrul
Global trading platform Webull expands to Malaysia
Maybank 1Q earnings up 9.8% on higher core fees
MPI set for strong show
Investors rush to grab piece of US$1.8 trillion UK pensions pie
Starwood’s US$10bil REIT turns to survival mode as pain lingers
Damned if you do, damned if you don’t
US stock changes affect Asia forex trades
Consistency in a sea of change
Impact of AI on jobs

Others Also Read