Bloomberg had this piece out earlier, posting it here so no-one gets any sleep tonight! ;-D
- Six privately owned companies in one of China's wealthiest provinces have defaulted on their debt or come perilously close in the last three months.
- With 68.1 billion yuan ($9.7 billion) in outstanding debt among those six companies alone, the distress in Shandong has rattled even seasoned investors.
- It's the practice common among Shandong companies of guaranteeing each others' debts. Firms don't have to make public these liabilities, leaving investors to wonder who's on the hook and for how much. With the once-strong industrial economy flagging, the murky ties between the province's private companies threaten to drag them all down together.
Here is the link to Bloomberg for more.
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Stories like this are prevalent, and ongoing. So for though China has managed to muddle through without a panic. Dunno when it be different different this time.
