May
14
How China Inc.’s Debt Fix Is Piling Risk on Individual Investors
ByHistory has been rough for Chinese savers. From hyperinflation in the 1940s to limits on deposit rates in recent decades, they’ve watched their funds get damaged by the policy decisions of overindebted governments.
Now, just as authorities ease financial repression by lifting deposit-rate caps, it’s the corporate sector that’s shifting its debt problems onto the balance sheets of Chinese citizens. Amid one of the country’s periodic equity bull markets, companies are selling record amounts of new shares — much of it to individual investors, some of whom are borrowing to fund their purchases…
How China Inc.’s Debt Fix Is Piling Risk on Individual Investors
