Economics
China Lender Faces $650 Million Default From Shadow Banking
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A Chinese bank was saddled with $650 million of defaults from an off-balance-sheet lending arrangement that channeled money to one of its shareholders and an affiliate, according to a state media report.
Evergrowing Bank Co. in Shandong province repaid 3.7 billion yuan ($600 million) of principal and 300 million yuan of interest on Aug. 29 as guarantor for the borrowing, the People’s Daily said on its website today. Three calls to the lender for comment went unanswered.