It is highly unlikely that Beijing would allow a systemically important SOE like China Huarong Asset Management to go under. Photo: Reuters
Opinion
Opinion
Macroscope
Why uncertainty over China Huarong has echoes of Europe’s debt crisis
- Concerns about Greece’s huge public debt burden and the mispricing of risk across the euro zone predated the eruption of Europe’s crisis
- Likewise, weaknesses in China’s corporate bond market, and uncertainty over Beijing’s support for troubled SOEs, have been weighing on sentiment
It is highly unlikely that Beijing would allow a systemically important SOE like China Huarong Asset Management to go under. Photo: Reuters
