China Shadow Banks Back in Spotlight With Loans for Ailing Firms
China’s crackdown on borrowing by local governments is forcing state-run entities in even some of the wealthiest provinces to tap costly credit from non-bank lenders, a stopgap that’s building up...
By Charlie Zhu, Zheng Li, Fran Wang · Bloomberg Markets
China’s crackdown on borrowing by local governments is forcing state-run entities in even some of the wealthiest provinces to tap costly credit from non-bank lenders, a stopgap that’s building up risks in an opaque corner of the financial system.