China's banking problems not as stated

On the 10th of May, I posted about China sailing into dire straits because of the amount of NPLs (Non-Performing Loans) its major banks had on their books. I based what I said on a report published by Ernst and Young which claimed that the total of bad loans was as high as $900 billion. This added a very authoritative voice to a buzz of concern about financial practice in China and seemed to agur ill for them, and consequently, us.

Not so. The authoritative voice of Ernst and Young is now squeeking apologies to all and sundry for a report that

had included unverified forecast data compiled by others as if it were historic information.
Ernst & Young said it did not wish to comment further on the specific errors it had made as it had "no desire to make this embarrassing situation even worse."

Byzantine Ruins

Actually, Dan Harris of China Law Blog informed me of this on the 15th of this month. I thought I had posted a correction, but now that I have checked, I see that I hadn't. I had only replied to his comment. For which, my apologies.

Mr Harris has kindly written again to tell me that he has obtained a copy of the report and has posted it here.

Tagged: Economy, China