271 Chinese Banking Institutions in Default, A New Signal of China’s Financial Crisis

The number of Chinese bank institution commercial paper defaults surged in July 2023. AFP/Getty Images

This July witnessed a surge in commercial paper defaults by Chinese banks, and the confidence of the Chinese public in bank deposits plummeted like never before.

A China expert warned that China’s financial crisis is about to hit.

Commercial Bill Defaults

According to the July 2023 commercial bill default data sheet released by the Shanghai Commercial Paper Exchange in August, as of July 31, a total of 2,851 commercial bill acceptors had defaulted, an increase of about 80 percent from 1,554 in January. Of the commercial bill defaulters, 271 were banking institutions, representing a 356 percent jump in one month from 33 defaulting banks in June.