China has become the largest emerging market destination for international bank lending, accounting for more than a quarter of cross-border claims on all emerging market economies, a central banking report shows. Cross-border claims on China increased by $65 billion in the second quarter of 2014 to $1.1 trillion, and were up nearly 50 percent in the year to the end of June, according to a quarterly report from the Bank for International Settlements on Sunday.
"China has become by far the largest (emerging market) borrower for BIS reporting banks. Outstanding cross-border claims on residents of China totalled $1.1 trillion at end-June 2014, compared with $311 billion on Brazil and slightly more than $200 billion each on India and Korea," the report says.
It said China's share of BIS reporting banks' foreign claims on all emerging markets stood at 28 percent in mid-2014, up from just 6 percent at the end of 2008.