SME Liquidity Risk Needs Attention - Industry Report

Regulators should monitor financial risks posed by real estate and local financing platforms that may be exposed to liquidity shortages, according to a report released by China Orient Asset Management. Wang Zhanfeng, secretary of the party committee and chairman at China Orient, said policy measures were needed to accelerate reforms of SME banks to develop corporate governance and broaden capital replenishment channels. Economists believed non-performing assets were still an issue, with 86% saying the full extent of the problem was not yet fully exposed. SME banks will continue to face risks in 2023, with 39.6% of respondents saying risk will increase, and 4.1% seeing a fall. (Source 21st Century Herald)