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China Eyes Bank-Loan Market

The People’s Bank of China has called on prosperous cities in the eastern region of the country to develop a market in which banks can sell their loans, reports Reuters.

The People’s Bank of China has called on prosperous cities in the eastern region of the country to develop a market in which banks can sell their loans. The bank, which singled out the cities of Zhejiang, Jiangsu and Shanghai, said such a market would help banks use their capital more efficiently, but not provide any details on how such a market would operate. Bank loans and credit account for 85% of total financing in China.

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