Chinese Currency Tumbles To 19-Month Lows As Bad Debts Hit 5 Year Highs

Chinese Currency Tumbles To 19-Month Lows As Bad Debts Hit 5 Year Highs (ZeroHedge, May 27, 2014):

As we discussed previously, delinquent loans in China are a problem… and a growing one. It seems that news is finally starting to filter to a mainstream audience as Bloomberg reports that China’s biggest banks are poised to report the highest proportion of bad debts since 2009 after late payments on loans surged to a five-year high, indicating borrowers are struggling amid an economic slowdown.As S&P warns,”overdue loans are a leading indicator of asset-quality deterioration and show the rising liquidity constraints among borrowers… and the disturbing thing is the end is nowhere in sight.” CNY has pluned almost 150 pips to new 19-month lows on the news.

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