Ernst & Young Global has withdrawn a report it issued in early May, saying that its dollar estimate of the bad loans held by China's major state-sponsored banks was "factually erroneous."

In a May 3 report, E&Y said that China's banks were facing up to $911 billion in bad loans. At the end of March, the Chinese government had reported total outstanding nonperforming loans of approximately $164 billion. The government has said that about $133 million of that amount is held by its four major state banks -- a figure much lower than in past years due to large write-offs of bad loans. The Ernst & Young report had put the big banks' share at approximately $385 billion.

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