(2) Lingling Wei, China's Banks Hide $2 Trillion in Loans; Accounting maneuver boosts bank profits and Chinese economy but fuels fear of a crisis. Wall Street Journal, Dec 8, 2016 (front page). http://www.wsj.com/articles/chin ... in-loans-1481130392
the first four paragraphs:
"In 2014, the Chinese city of Haimen on the mouth of the Yangtze River set out to build a large apartment complex and turned to Bank of Nanjing Co. for about $29 million in financing.
"The bank was happy to oblige but it didn’t call the money a loan, according to people familiar with the matter. It was added to Bank of Nanjing's balance sheet as an 'investment receivable,' a loosely regulated category of assets that allows bank officials to set aside little or nothing for potential losses.
"Bank officials aren't shy about the accounting sleight of hand, which is rampant across China. The bank had about $39 billion in investment receivables in the third quarter, nearly as big as its loan portfolio, and profits have climbed by more than 20% a year.
"As of June, 32 publicly traded Chinese banks had a total of $2 trillion in investment receivables as of June, up from $334 billion at the end of 2011, according to a tally by The Wall Street Journal of the latest available information from data provider Wind Information Co[. Ltd Wind资讯 which is short for 万得信息技术股份有限公司, according to its website].