Banks shun Fujianese over default woes
Print Edition
RESIDENTS of Fujian Province struggle to get loans from banks in Shanghai because of a large number of defaulters.
A bank source told Shanghai Daily that most banks in Shanghai reject loan applications of people from Fujian.
“The main concern is the bad debt of Fujianese who were involved in steel trading business in Shanghai since 2012. They have left behind lot of bad credit — and bad reputation,” the source said. “The average personal bad debt ratio was as high as 20 percent by 2013.”
Another clerk from Bohai Bank said banks have been wary of Fujianese for a long time.
“Whatever the business, banks avoid issuing loans to Fujian customers,” the person said. “There was no way to confirm if any of their relatives were involved in steel businesses.”
By the end of 2012, China’s steel industry had a debt burden of US$400 billion — the size of South Africa’s economy. Some of China’s leading mills alone owed 200-300 billion yuan (US$32-48 billion), according to the China Iron and Steel Association.
The steel traders come from a tight-knit community in Zhouning in the southeastern province, where some 12,000 steel trading companies are scattered across the county, according to the local business chamber.
The Shanghai branches of Big Four banks told thepaper.cn that they had issues giving loans to Fujian customers.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 娌狪CP璇侊細娌狪CP澶05050403鍙-1
- |
- 浜掕仈缃戞柊闂讳俊鎭湇鍔¤鍙瘉锛31120180004
- |
- 缃戠粶瑙嗗惉璁稿彲璇侊細0909346
- |
- 骞挎挱鐢佃鑺傜洰鍒朵綔璁稿彲璇侊細娌瓧绗354鍙
- |
- 澧炲肩數淇′笟鍔＄粡钀ヨ鍙瘉锛氭勃B2-20120012
Copyright 漏 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
