"In a report, BofA analyst Winnie Wu writes that "mismatching NPL pictures from top down and bottom up" are concealing a major risk to the Chinese economy – the proliferation of "zombie companies" being propped up by the China's banking system.
At a time when investors are worried about a hard-landing, these zombie companies are holding the country back from real economic growth and threaten to throw the economy into a painful lost decade reminiscent of Japan's experience."
