China's Lenders Left in the Dark on 'Zombie' Companies

The video discusses the issue of 'zombie companies' in China, which are state-owned enterprises that are too weak to survive without government support. These companies pose a concern for banks due to rising bad loans and lack of transparency. The video highlights the regional impact of these companies and the differing agendas of banks and local authorities. It also raises doubts about the accuracy of Chinese banks' balance sheets, with some analysts suggesting that the official bad loan statistics are underestimated.

What is the primary reason provinces are withholding zombie company lists from banks?

• To avoid government intervention

• To maintain competitive advantage

• To protect the companies from public scrutiny

• To prevent banks from cutting off financing

Why are banks particularly concerned about the identification of zombie companies?

• They are worried about rising bad loans

• They need to report them to international regulators

• They plan to acquire these companies

• They want to invest in these companies

What is a major issue with transparency in China regarding zombie companies?

• Banks are not interested in the lists

• The government has already solved the issue

• Local governments are not communicating with banks

• Investors are not concerned about transparency

Which province is mentioned as an example for sharing information about zombie companies?

• Shanghai

• Jiangxi

• Zhang

• Beijing

What is the estimated bad loan ratio according to some analysts, compared to the official statistics?

• 1.67%

• 5%

• Closer to 20%

• 10%