China’s Banks Said to See Risks in 23% of $1.1 Trillion Loans

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China’s Banks Said to See Risks in 23% of $1.1 Trillion Loans

http://noir.bloomberg.com/apps/news?...d=aTtTO8bSjemE

Local governments set up the financing vehicles to fund projects such as highways and airports due to limits on their ability to directly borrow money. The central government this year restricted borrowing on concern money isn’t being used for viable projects.
Only 27 percent of the loans to the financing vehicles can be repaid in full by cash generated by the projects they funded, the person said.