It seems as if Chinese banks are hiding bad assets. The Chinese government encourages the banks to hide bad loans by rolling them over. It seems that over 40% of Chinese bank loans might actually bad loans. That is part of the problem with foreign investment hiding of bad assets. http://www.zerohedge.com/news/2015-05-14/how-chinas-banks-hide-trillions-credit-risk-full-frontal
I've been saying for a while that a crisis is likely to happen there. Let's hope it won't be too bad if / when it does.
I read an article about 6 months ago similar to this topic. It was above my pay-grade, but what I got from it was that the central bank was giving banks 0% loans to cover bad loans and not call them in. Will try to find the article, but it was more geared toward this being political corruptions since many of the loans were being taken by politically connected people who then did not have to pay them back.
