In the event of a credit crisis that may occur in China today, at least one third of the country's more than 20,000 metal trading companies could go bankrupt. This is stated in the assessment of the prospects for the metallurgical industry of the PRC from the official government news agency Xinhua.
The contraction in lending could lead to an increase in bad debt, which in January reached its highest level since September 2008. China's economic growth will slow to its lowest level since 1990 at 7.5 percent.
Due to the growing risks in the commercial sector, investors prefer to divert their capital into government bonds.
Tightening credit policy in China will lead to the closure of a third of all metal traders in the country
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Azovpromstal® 26 February 2014 г. 10:02 |
