China's consumer debt worsens as 100 million adults miss payments
China's consumer debt problem is getting worse, with as many as 100 million adults (about one in 10) falling behind on payments.
Tech giants like Ant Group and ByteDance are making it easier (and pricier) for people to borrow, offering quick loans with interest rates from 4% to more than 24%.
It has left many stuck in a cycle of debt that keeps growing.
Defaults strain banks and retail sales
The surge in defaults is hitting retail sales hard, dragging them down to levels not seen since the pandemic.
Banks are finding it tougher to lend, which affects government plans for things like car and home renovation subsidies.
China has tried fixes like credit-amnesty programs and capping loan rates, but without a personal bankruptcy system, there are not many lasting solutions for people who just cannot pay back what they owe.