New borrowing criteria to restrict China loan growth: Fitch

31 Jan 2013

New restrictions imposed on Chinese local governments’ borrowing capabilities will likely boost risk management practices, but corporate governance issues will continue to plague the industry, says Fitch.

Local government funding vehicles (LGFVs) will feel continued financing pressure as Chinese regulators move in to impose restrictions on the types of collateral that can be pledged to obtain additional funding.

There will be limited growth on bank loans this year as a result of strict borrowing criteria imposed ...

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