Over the past 2 years mortgage growth in China has surged supporting a buoyanthousing market & helping partially clear the significant property oversupply issuemany 2nd and 3rd tier cities faced.In the past 3-4 months another phenomenonhas started to emerge which is equally interesting:Short-term consumer debt inChina has started to surge.During Q2 17 household debt with a duration of lessthan one year accelerated & is now growing +34-35% yoy(faster than mortgagegrowth)and currently makes up close to 9-10% of all net new credit provisionwithin China(a level we have not seen before).
20170818-DEUTSCHE_BANK-CHINA_BANKS:CHINA'S_CONSUMER_DEBT_BOOM-717117.pdf
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