china banks fiscal vehicles

China's banks should not be used as fiscal vehicles while supporting private firms

China’s Banks Should Not Be Used As Fiscal Vehicles While Supporting Private Firms

Xu Xueming via Caixin | Private enterprises have recently faced liquidity problems, resulting from refinancing issues and the pledged-share crisis. For some of them, the reason lies in difficulties in their own operations. How do we solve the problems of private enterprises’ rising nonperforming loans, bond defaults and refinancing difficulties, and also manage the risk of forced sales of stocks pledged as collateral by controlling shareholders?