NPL

Loan quality polarised between China's east and west

The impaired loan ratio varies between China’s east and west regions and among its different industries.

The asset quality of the big Chinese banks is not as badly eroded by bad loans as expected thanks to their broad exposure to the country’s different regions and sectors, J.P. Morgan said.

The non-performing loan NPL ratio is various greatly among China’s east and west areas and different major industries.

“The east coast has a lot of pain in terms of rising NPLs,” said Josh Klaczek, head of Asia Financial Services at the bank. “Impaired loans in the area increased 12% in the second half of 2011 and 4% in the first half of this year.”

By contrast, NPLs in China’s...

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