A worker walks past piles of scrap steel at a plant of Dongbei Special Steel Group in Dalian, Liaoning province, in March 2018. The company failed to repay 10 batches of corporate bonds worth US$1 billion from March 2016 onwards, leading to a legal battle between the company and its 1,911 creditors. After a court-ordered “bankruptcy restructuring” plan in which creditors lost 78 per cent of their money, and a windfall from a steel price rally, the company bounced back. Photo: Reuters A worker walks past piles of scrap steel at a plant of Dongbei Special Steel Group in Dalian, Liaoning province, in March 2018. The company failed to repay 10 batches of corporate bonds worth US$1 billion from March 2016 onwards, leading to a legal battle between the company and its 1,911 creditors. After a court-ordered “bankruptcy restructuring” plan in which creditors lost 78 per cent of their money, and a windfall from a steel price rally, the company bounced back. Photo: Reuters
A worker walks past piles of scrap steel at a plant of Dongbei Special Steel Group in Dalian, Liaoning province, in March 2018. The company failed to repay 10 batches of corporate bonds worth US$1 billion from March 2016 onwards, leading to a legal battle between the company and its 1,911 creditors. After a court-ordered “bankruptcy restructuring” plan in which creditors lost 78 per cent of their money, and a windfall from a steel price rally, the company bounced back. Photo: Reuters
Joe Zhang
Opinion

Opinion

The View by Joe Zhang

If China is serious about cracking down on its mountain of debt, it must stop sending mixed signals

  • While senior officials stress the need to repay debt, the government has made it harder for creditors to recoup loans
  • Conflicting messages from the government and judiciary have emboldened irresponsible borrowers

A worker walks past piles of scrap steel at a plant of Dongbei Special Steel Group in Dalian, Liaoning province, in March 2018. The company failed to repay 10 batches of corporate bonds worth US$1 billion from March 2016 onwards, leading to a legal battle between the company and its 1,911 creditors. After a court-ordered “bankruptcy restructuring” plan in which creditors lost 78 per cent of their money, and a windfall from a steel price rally, the company bounced back. Photo: Reuters A worker walks past piles of scrap steel at a plant of Dongbei Special Steel Group in Dalian, Liaoning province, in March 2018. The company failed to repay 10 batches of corporate bonds worth US$1 billion from March 2016 onwards, leading to a legal battle between the company and its 1,911 creditors. After a court-ordered “bankruptcy restructuring” plan in which creditors lost 78 per cent of their money, and a windfall from a steel price rally, the company bounced back. Photo: Reuters
A worker walks past piles of scrap steel at a plant of Dongbei Special Steel Group in Dalian, Liaoning province, in March 2018. The company failed to repay 10 batches of corporate bonds worth US$1 billion from March 2016 onwards, leading to a legal battle between the company and its 1,911 creditors. After a court-ordered “bankruptcy restructuring” plan in which creditors lost 78 per cent of their money, and a windfall from a steel price rally, the company bounced back. Photo: Reuters
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