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Indebted Chinese firms issue stock to pay loans

Move lets banks shore up balance sheets but may make them reluctant to shut down firms

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BLEAK OUTLOOK: While repaying loans with shares might seem a quick solution, it could make China's debt problems more pernicious.

Hong Kong

A NEW approach to managing China's corporate debt burden may offer temporary relief for banks but spell further difficulties for the country's economy: having deeply troubled companies use stock to pay overdue loans.

Early evidence of the strategy emerged late on Thursday

sentifi.com

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