China’s shadow-banking industry threatens its financial system
Weak economic growth means the country is particularly vulnerable to contagion
Shares in Xinhua Trust, a Chinese shadow lender, are selling for rock-bottom prices. The outfit went bankrupt in May, becoming the first Chinese trust to fall in more than two decades. Since then chunks of the firm have been put up for sale on Taobao, an online e-commerce platform, at a 30% discount. Its company cars were recently added to the auction, which has been mandated by a court. A bargain-hunter could snap up Xinhua trademarks for just 12,000 yuan ($1,650).
This article appeared in the Finance & economics section of the print edition under the headline “Ubiquitous, opaque, tangled”
Finance & economics September 2nd 2023
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