Debt

China's shadow banking curbs cut local borrowers' lifeline

Country's efforts to cut excessive borrowing redoubled, focus on risks from local companies

bloomberg

26.01.2018

China's crackdown on shadow banking is raising concern among bond investors about local borrowers' ability to make repayments as a record CNY1.8 trillion (€230 billion) of notes come due this year.

Regulators have stepped up efforts to patch loopholes in off-balance sheet financing in the last couple weeks, moves that will effectively block most fundraising channels for local borrowers.