The head of Greater China financials equity research at UBS, May Yan, expects China's bad debts to increase to 5.2 trillion yuan (HK$5.77 trillion) in two years in the worst scenario. UBS investment bank research had lowered expectations on China's GDP growth rate to 4.8 percent for 2020, last week. Yan expects bad debts to increase to 3.5 trillion yuan in two years in the Chinese banking industry. "Negative growth in banks has never happened in the past 10 years, even in 2016, the banks recorded 2 percent growth," Yan said. In the worst scenario, the 2020 economic growth rate is expected to be 3.2 percent, and 6.6 percent in 2021.

Source: The Standard March 17, 2020 07:53 UTC