综合一区欧美国产,99国产麻豆免费精品,九九精品黄色录像,亚洲激情青青草,久久亚洲熟妇熟,中文字幕av在线播放,国产一区二区卡,九九久久国产精品,久久精品视频免费

Business / Economy

Hangzhou debt guarantees spark default contagion

(Agencies) Updated: 2014-04-28 11:19

Hangzhou debt guarantees spark default contagion

Workers look at a ladle pouring molten iron into a container at a steel plant in Hangzhou, Zhejiang province in May 30, 2012 file photo. [Photo/Agencies]

SHANGHAI - A network of loan guarantees set up to improve companies' access to credit in one of China's richest districts is creating new risks of default as some debts sour, another sign of how private firms are bearing the brunt of an economic slowdown.

Chinese media have reported on a credit crunch developing among steel and textile manufacturers in Hangzhou city, 175 km (110 miles) south of Shanghai in Zhejiang province, as the failure of some to repay loans pushes their burden onto healthier firms.

Hangzhou is part of the Yangtze River Delta (YRD), an engine of growth during China's boom years but now the source of a third of non-performing loans in the country.

Hangzhou debt guarantees spark default contagion
Chaori default is a welcome move

Hangzhou debt guarantees spark default contagion
First bond default signals market progress
The government ranks the city's Xiaoshan district as China's seventh wealthiest. One of the main drivers of its prosperity - small, private firms - is now a handicap.

"The textile industry is not a big borrower in the banking sector. The problems that we see arise when mutual guarantees go bad and textile firms are dragged in," said Robert Yang, assistant to the president at the China National Textile & Apparel Council.

Concern about the huge growth in Chinese corporate debt since the global financial crisis has intensified this year as the government allows market forces to play a bigger role in deciding winners and losers.

Private firms often struggle to obtain credit from State-owned banks, which prefer to lend to State-owned firms due to their government backing.

That trend has worsened as economic growth slows, credit conditions tighten, and authorities work to reduce excessive investment and overcapacity in some sectors.

Steel and textile manufacturers in Xiaoshan, like other private firms around the YRD, sought to overcome such obstacles by providing loan guarantees for each other to gain bank credit.

Now defaults by a few companies threaten a chain reaction that could ensnare even profitable firms, as the guarantees have left them on the hook for debts of their bankrupt competitors.

Previous Page 1 2 Next Page

Hot Topics

Editor's Picks
...
...
台中市| 和硕县| 高唐县| 正定县| 沐川县| 蓝山县| 武夷山市| 丘北县| 丰镇市| 绥阳县| 安丘市| 高台县| 吐鲁番市| 池州市| 威远县| 玉门市| 昭觉县| 牟定县| 宣恩县| 咸丰县| 监利县| 慈利县| 洛浦县| 安庆市| 中卫市| 南雄市| 沭阳县| 德格县| 额敏县| 文化| 海门市| 平顶山市| 磴口县| 沧州市| 加查县| 南通市| 庐江县| 休宁县| 扎鲁特旗| 新平| 洪江市|