China’s dodgy-debt double act
The agonies of Huarong and Evergrande
CHINA HAS been trying to clean up its bad corporate debts for years. Although it made some progress before the pandemic, the task often seems interminable, it remains crucial for the country’s long-run economic development—and for the growing ranks of global investors with exposure to Chinese stocks and bonds. The government insists it wants more market discipline and a transparent process for letting firms default without blowing up the financial system.
This article appeared in the Leaders section of the print edition under the headline “China’s toxic twins”
From the September 4th 2021 edition
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