Huishan Turmoil Highlights China's $8 Trillion Shadow Loan Risk
- Jiutai Bank discloses 1.35 billion yuan credit to Huishan
- Some Huishan loans were arranged as investment receivables
Huishan Dairy Doesn't Believe Funds Were Misappropriated
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Turmoil at a small Chinese dairy company is shedding rare light on the final destination for some of the country’s estimated $8 trillion of shadow banking loans.
Jilin Jiutai Rural Commercial Bank Corp., a major creditor to embattled China Huishan Dairy Holdings Co., said late Tuesday it has extended a total of 1.35 billion yuan ($196 million) in credit to the dairy producer, including 750 million yuan through the purchase of investment receivables from a finance lease company.