Fears Of China’s Shadow Banking Implosion Are Overblown
Tuesday, February 18, 2014
“(Highly risky loans) among microcredit companies (in China) are not widespread,” Qin Huichun, CEO of China Commercial Credit, tells China Money Network in a phone interview from the company’s office in Wujiang district in Suzhou.
All of China Commercial Credit’s loans are secured with real assets as collateral. As a comparison, about 80% to 90% of loans under $1 million in the U.S. is secured with collateral in 2013, according to the U.S. Federal Reserve.