Evergrande is not the only looming danger in China’s financial system
Crony capitalism has flourished among the country’s small and mid-tier banks
SCARES ABOUT toxic debt are an ever-present feature of China’s economy. The latest involves Evergrande, a troubled developer that threatens to cripple the property sector. The firm also has tentacles that reach into the darkest corners of the Chinese financial system, wrapping around banks and shadow lenders. Yet even as Evergrande catches the eye, another risk is emerging: crony capitalism at smaller banks.
This article appeared in the Leaders section of the print edition under the headline “China’s other debt problem”
From the November 13th 2021 edition
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