China's best bank called 'mirage' of shadow lending

The best-performing bank in China is the Bank of Tangshan

• It reports the fastest growth of 156 Chinese financial institutions


• The lowest level of bad loans (0.06%(


• Its profit jumped 436% in 2 years


• Assets up almost 400% percent since the start of 2014 to 177.9 billion yuan ($26.7 billion)

Bloomberg report:

• Its largely driven by shadow lending


• "It's a mirage built upon risks," said He Xuanlai, of Commerzbank AG. The Singapore-based analyst cited smaller banks' use of so-called "investment receivables" - including asset management plans and wealth management products - to boost lending without facing requirements to bolster capital and loan-loss provisions. "It's hard to assess the banks' true asset quality."

The report is here if you'd like to read it all. Ungated at Bloomberg

And, if you'll pardon the mixed metaphor this 'mirage' is the tip of the iceberg.

China's best bank called 'mirage' of shadow lending
China's best bank called 'mirage' of shadow lending
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