Dagong Shines a Light on China's Shadowy Debt Pile - Presented by: The Aol. On Network

Shadow banking. Mounting local government debt. The financial world has been nervously watching for signs reckless lending will shake China's financial system. While some Chinese companies have defaulted on bonds issued overseas, that doesn't happen domestically, with local governments preventing such defaults. When the normal rules don't apply, and real numbers can be hard to come by, it can be a tough environment for rating agencies.



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