China's bad loan season descends again and this time it may be really bad

The debt of local government financing vehicles and property developers are looking precarious while several trust investment firms are on shaky ground

It happens again and again. Every time Chinese banks start sweeping their books of bad loans, investors are convinced it will be the tail-end of a chronic problem. Somehow, they tell themselves, lenders are going to have to emerge with a clean slate and be ready to keep credit flowing. And the power of positive thinking dissolves the misgivings. At least for a while.
 

This time though, it will pay to be watchful. Even with the trappings of an industrial resurgence, the economic recovery from  Covid-19 has been uneven. Fiscal stimulus measures haven’t been universally beneficial. Some provinces but not