Good news from China are rare these days. Coronavirus has possibly claimed for its victim in Chinese banking sector.
Locals report today, that Yichun Roche Gold Bank, based in Jiangxi Province, went bankrupt while ordinary people braved the virus threat and appealed to the government. Video footage shows crowds gathered outside a seemingly institutional building.
Jiangxi Province's Yichun Roche Gold Bank's "private financing institution" went bankrupt, and ordinary people braved the plague and appealed to the government! pic.twitter.com/z5vFJwN4No— Harry Chen PhD (@IsChinar) February 21, 2020
With the coronavirus outbreak in China, country’s banking sector might experience even bigger risk as it already is in a rough shape.
The prolonged crisis is a threat to small and medium-sized companies that rely on bank credit to survive. As companies struggle with repayments, bad debt across the banking system could rise dramatically. Such a scenario would be considered dangerous as heavy amounts of bad debts, declining economic growth and trade a war with the US puts additional pressure on the stability of the Chinese banking system.