Bad loans into domestic economic worries

Washington (reporter Tang) Deloitte China and the Australian Society of Accountants A recent joint survey shows that bad loans and the deterioration of credit conditions have been seen as a "worry" in China's economic recovery, but most business people are still generally optimistic about the economic outlook. According to the survey, about 96% of respondents thought the Chinese economy was recovering, with more than 58% per cent expecting China's GDP growth to reach 5% to 10% in 2010, and about 23% of those surveyed expected to see more than 10%. However, respondents considered that there was a risk of new loans, and that more than 5% of them would become non-performing loans, while the non-performing loan ratios of China's major banks were now less than 2%. Other most pressing threats include the consumer credit crunch and the possible collapse of the offshore banking system.