UBS have analysed 765 banks in China, they conclude:

  • Efforts to clean up the country's financial system are well underway
  • As much as 1.8 trillion yuan ($271 billion) of impaired loans shed between 2013 and 2015, and 620 billion yuan of capital raised in the same period
  • But the Chinese banking sector will still require up to 2 trillion yuan of additional capital as well as the disposal of 4.5 trillion yuan worth of bad loans

"We believe that for every lender who has implemented an asset resolution plan, many others have not" says UBS

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Bloomberg have more at their piece here (this came out overnight)