The three sectors with the highest rates of non-performing loans this year are wholesale and retail (2.6 percent), information technology services (2 percent) and manufacturing (1.8 percent), China Daily reported Thursday, citing a study by a central government think tank. The rates were far above the overall NPL average, which was 0.97 percent as of Sept. 30, according to an annual report on China’s financial development compiled by the Institute of Finance and Banking at the Chinese Academy of Social Sciences (CASS). Nationwide, total outstanding NPLs increased by 24.1 billion yuan (US$3.96 billion) in the third quarter to 563 billion yuan, the CASS report said, citing data from the China Banking Regulatory Commission. “Once economic growth slows down, enterprises in these [three] sectors will face more downward pressure on their operations, affecting their loans”, institute director Wang Guogang was quoted as saying. The “safest” sectors include mining, utility management and social services, which have NPL rates hovering around 0.2 percent, the study showed.
– Contact HKEJ [email protected]