Posted on 09 Apr 2015
Chinese banks are reducing their exposure to the country’s debt laden steel sector, withdrawing credit from struggling steel mills, according to the Economic Observer, a financial newspaper.
The Chinese banking system withdrew 150 billion yuan in loans from the steel sector, which accounts for 10 per cent of total planned lending of 1.5 trillion yuan.
Privately controlled steel mills have been hard hit by the latest lending policy. Zhao Xizhi, honorary chairman of the China Metallurgy Association says the cost of funding for private mills is about twice as expensive as state-owned firms.
