Onshore yuan rises despite bad loansBusiness | Stella Zhai 15 Sep 2020
The onshore yuan yesterday surged to a16-month high yesterday as China's financial regulators revealed that bad loans handled in the past three years exceeded that of the total made in the eight years to 2017.
The currency strengthened 134 basis points to close at 6.8235 per US dollar. The offshore yuan also reached 6.8205 against the greenback before paring the gains.
The mainland bank industry has disposed of a total of 5.8 trillion yuan (HK$6.59 trillion) of non-performing loans since 2017. The number is even higher than the sum of those handled during the eight years before that, said Zhu Tong, a China Banking and Insurance Regulatory Commission official.
In the first half of the year, the disposal of non-performing loans amounted to 1.06 trillion yuan, rising 168.9 billion yuan from a year ago.
The mainland banking sector saw the ratio of non-performing loans rise to 2.14 percent by end-August and outstanding non-performing loans reached 3.7 trillion yuan by the end of last month, said CBIRC official Liu Zhongrui.