The Impact of Coronavirus on Chinese Consumers

Early data coming out of China shows an increase of loans that are past due; According to Bloomberg, overdue credit-card debt increased about 50% from the year prior; Qudian, a lender in Beijing shared that their delinquency ratio increased to 20% in February from 13% at the end of 2019; other lenders have paused their credit-card business altogether; it is estimated that 8 million people in China lost their jobs in February;  Martin Chorzempa, a research fellow at the Peterson Institute for International Economics in Washington stated, “These issues in China are a preview of what we should expect throughout the world.” Bloomberg also shares debt levels from other countries across the globe. Bloomberg

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