Via Reuters:
Chinese banks are set to see a slowdown in lending growth in the second half of the year, having exhausted most of their annual credit quota, raising the spectre of corporate defaults as financing costs climb further in the world’s No.2 economy.
Beijing’s crackdown on riskier lending has already stretched financing costs and hurt profit margins. Analysts estimate banks have used 80 percent of their yearly credit quota over January-June, versus the usual 60 percent, amid a regulatory push to bring shadow financing activities to the main loan book.
