Debt guarantee tangle: China’s private firms hit by default contagion
An employee places genuine Chinese one-hundred yuan banknotes into a counting machine at the Counterfeit Notes Response Center of KEB Hana Bank in Seoul, South Korea, on Friday, July 13, 2017. Yuan is set to slide for fifth week, longest losing streak since July 2016, as escalating U.S.-China trade tensions weigh on sentiment. Photographer: SeongJoon Cho/Bloomberg
The collapse in China of a complex web of debt guarantees involving several private firms highlights risks in its financial system and opens up a potentially hazardous front for an economy in the grip of its slowest growth in nearly three decades.