Why China ‘Bad Bank’ Huarong’s Fall Is Big Bad News

What happens when a company set up by the Chinese government to help clean up toxic debt in the country’s banking system gets into trouble itself? It seems we’re about to find out. Investors were spooked when China Huarong Asset Management Co., one of the country’s biggest distressed asset managers, failed to release financial statements in the wake of the execution of its former top executive for bribery. But what has triggered broader worries is the prospect that China may let a state-backed i

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