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Non performing loans still an issue for China’s banks

Non performing loans still an issue for China’s banks

(10 February 2006 – China) Chinese banks’ non performing loan performance was a mixed bag in 2005. According to reports, 3.8 percent of China Construction Bank’s total loans were non performing in 2005, compared with 3.92 percent in 2004.

China Construction Bank had an initial public offering in October 2005 of US$9.4 billion.

Elsewhere, 2.5 percent of Bank of Communication’s overall loans were non performing, compared with 2.91 percent a year earlier.

However, Bank of China which is set to list by the middle of this year, saw its non performing loans worsen, from 5.12 at the end of 2004, to 5.4 percent at the end of 2005.

Industrial and Commercial Bank of China (ICBC) had a non performing loan ratio of 4.5 percent at the end of 2005. ICBC is also set to list in 2006.

China Banking and Regulatory Commission said overall total loans improved from 13.21 percent at the end of 2004 to 8.9 percent at the end of last year.

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