Credit risks loom over areas along the coast

Coastal and some western provinces, along with the nation's third-and fourth-tier cities, have the highest credit risks in China, including those from excess land and housing supply, rampant borrowing, and poor fiscal conditions, a new report said on Tuesday.

The study, prepared by Japans's biggest brokerage Nomura Securities, sheds new light on the geographic locations of China's credit default risk and is based on assessments made on property market risk, fiscal risk, financial risk and economic fundamentals in 30 provinces and 265 cities in China.

The four dimensions are specifically gauged in 13 indicators, including property investment to GDP ratio, home price to household income ratio, local government financing vehicle debt to operating income ratio, land sale revenue to fiscal revenue ratio, outstanding loans to GDP ratio and so on.