IMF staff weigh options for tackling Chinese NPLs

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It is "critical" that plans to convert non-performing loans (NPLs) in China to equity, or to securitise them, are designed in the "right" way, a technical note published by the International Monetary Fund argues.

The stock of NPLs held by Chinese banks is rising. The China Banking Regulatory Commission (CBRC) estimates 1.67% of all loans were non-performing as end-2015, which equates to 1,274 billion yuan ($197bn) – up from 1.59% the previous quarter.

Local media reports suggest the authorities

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