Financial strains in the “new” China

Print edition : April 18, 2014

The China Minsheng Bank in Beijing. Shanxi Haixin Iron and Steel Group, the largest private steel producer in the country, defaulted on loans estimated at $3.57 billion from this bank. Photo: JASON LEE/REUTERS

The production line at Shanghai Chaori Solar Energy Science and Technology Co Ltd in Jiujiang. The company failed to meet its commitment to pay up $14.5 million in interest due on bonds it had issued in 2012. Photo: REUTERS

Rubble of residential buildings demolished to make room for skyscrapers in downtown Shanghai. According to a 2013 survey, about 65 per cent of China’s wealth is invested in real estate, much of it speculative. Photo: ALY SONG/REUTERS

Chinese Premier Li Keqiang. He said recently that defaults on bonds and other financial products were “unavoidable”. Photo: WANG ZHAO/AFP

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