Moody's says China's banks are getting less strict in recognizing bad loans,

  • Failing to include some debts that have been overdue for at least 90 days
  • Moody's analysis of the first-half results of 11 listed banks
  • Moody's argues that the pace of the increase in loans overdue for at least 90 days isn't being reflected in increases in overall bad-loan numbers in a struggling Chinese economy

More at Bloomberg

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Yeah. Shocked I am.