3 brokers in China have flagged the debt of 5 companies
The brokers are concerned about the five companies' liquidity risks
"One of the triggers for a financial crisis in China would be high-profile corporate defaults, which could change a deep-rooted mindset among investors that the government would always stand behind troubled companies," said Xia Le, a Hong Kong-based economist at Banco Bilbao Vizcaya Argentaria SA. "Then a panic would follow."
The flagged companies are here at a Bloomberg report (see link, above), they are a chemical producer, chicken processor, a sausage maker, a tin smelter and a coal miner
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And .... that's not all from China
- Its been a bad morning for stocks, with the Shanghai Composite, for example, off more than 1.7%
- Base metals prices are getting walloped ... despite cuts to production agreed to last week and over the weekend
- Its SDR decision day ... but that hasn't stopped what looks like intervention in the yuan