Cash Crash for Wenzhou's Private Loan Network
Dubbed the nation's capital of private financing, the city of Wenzhou offers a textbook example of how non-bank lending has fueled private sector prosperity – and risk-taking – in China.
A recent central bank survey said about 60 percent of all local businesses and the vast majority of households are interconnected through the city's private lending system.
It's a tight financial network that interweaves lenders and borrowers collectively, often to their mutual benefit and sometimes to their terrible loss.
- Marriage, Sex and Character
- China Railway Corp. to Issue Bonds
- Passage to History
- Don't Expect Praises
- Investment in Agriculture Climbs
- Final Fantasy
- A Foul Find
- In Friday's Papers: Cabinet to Reduce Red Tape, Nationwide Inspection on Health Food
- Healthcare Needs Fundamental Reforms, Experts Say
- Healthcare and One-Child Policy: China's Ticking Bomb
- Sign up to receive our free daily newsletter
- Why Foxconn's Switch to Robots Hasn't Been Automatic
- Too Big To Fail Is Bigger than Ever
- Steel Industry Forges Ahead with Reform
- Graphics：Gold Consumption Jumps to Record High in Q1
- Delicacies of the Chinese Dream
- Deputy Shanghai Mayor 'to Take over at CIC'
- Closer Look: Divining Clues on the Future of Reform
- Investment Company Asks: Can We Legally Short Sell?
- Playing the Long Game
- The Real Reason the Stock Market Is Slumping