Nisha Gopalan, Columnist

China's Bad Banks Serve Zombies, Not Investors

Creating more asset-management companies doesn't mean the nation's biggest lenders are off the hook.
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China's zombie companies can rest easy. It's a shame the same can't be said for investors in the nation's banks.

The big five lenders, startingBloomberg Terminal with Agricultural Bank of China Ltd., plan to set up bad banks that will convert soured debt to equity.