Slowing growth and the move towards a market-driven economy have led some foreign banks to adopt stricter measures when lending to China’s state-owned enterprises by differentiating between SOEs receiving various levels of government support and demanding more collateral, Reuters reported, citing bank policy announcements. The demand for collateral is part of a wider trend, with approximately 70% of last year’s fourth-quarter borrowers pledging land or manufacturing plants, according to a survey published by the Cheung Kong School of Business.
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