The Chinese government has ordered a major probe into the level of debt owed between companies from the private and public sector, also known as “triangular debt”. Various ministries are involved in the investigation. From January to May, the turnover rate of receivables among state-owned enterprises stood at 4.9 times, 0.32 times lower than the same period of last year. Equipment manufacturers had suffered most in terms of payment defaults with both receivables and payables increasing “substantially”. The steel and coal industries are also severely affected. Among 1,437 listed companies that had published half-year results as of September 23, receivables stood at CNY803.9 billion by the end of June, up by 45% year-on-year. By March, receivables among industrial enterprises rose by 18% year-on-year to CNY7.12 trillion, accounting for 12.5% of outstanding loans, the highest level since 2009. Non-performing loans at Chinese banks increased for a third straight quarter to CNY456.4 billion by June, the longest deterioration in eight years.