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<b>Bad debts just get bigger</b>

Headline: Bad debts just get bigger
Date: June 2001
Author: Chris Cockerill

The best guess as to the eventual size of Chinese banks’ bad debts is that they will be many times larger than initial official estimates. In a desperate effort to clean up their balance sheets, banks have shifted bad debts to asset management companies. But there’s no sign that these can offload them to new money investors or engineer decent recovery rates. And there’s plenty more to come. Ministers may feel a little queasy when they get the final bill.

Jiang Jianqing
There have been a few rumblings coming from the Chinese mainland and its banks as they attempt to tick off the tasks on their things-to-do list. On the positive side, Bank of China has been awarding valuable mandates to privatize its Hong Kong operation.

Goldman Sachs and UBS Warburg seem satisfied with life, but still haven’t officially raised the banners and popped the champagne in public to celebrate landing such an important prize.

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