Reported 2 months ago
China has experienced its first contraction in bank loans in nearly two decades, raising fears of a potential 'balance sheet recession' similar to Japan's in the 1990s. A reduction in corporate borrowing and increased debt repayment among households is contributing to a decline in credit demand, which may hinder economic growth. Economists emphasize the need to stabilize asset prices to avoid a pervasive pessimistic mindset among consumers and businesses.
Source: YAHOO