As the Chinese banking system is surpassed its European counterparts at the end of 2016, according to Financial Times analysis, a Natixis report on Chinese bank asset quality notes improvement. However, the report points to a shifting of troubled loans from the banks back into the nation’s financial system. The bad debt just doesn’t disappear even with Debt-To-Equity Swaps.
And tied with a recent report by the FT this is probably not good news…