Det er Kinas banker, der går ned nu.

But China’s economic condition is far worse than that. The country’s debt pile has risen to 205 percent of GDP, and analysts say about one-third of that is bad debt. Borrowing in the largest Asian economy continues to rise rapidly, but GDP isn’t growing at a similar pace. That’s because a large number of Chinese businesses are raising fresh debts to pay off old ones with high interest rates.

Latest in China’s financial woes is a liquidity squeeze that pushed the Shanghai Interbank Offered Rate (Shibor) to an all-time high of 13.44 percent on Thursday from just 7.66 percent on Wednesday and less than 4 percent at the beginning of June. Chinese banks use Shibor to lend money to each other. The shortage of cash has prompted local banks to borrow at higher rates from other banks.