Barely 26 years old, Zhang Xi has studied at an elite American university, worked for an investment bank in Hong Kong and an oil company in Beijing and now may launch an Internet startup with two friends.
China Construction Bank Asia Corp. is marketing a sale of dollar-denominated bonds, testing demand for the nation’s bank debt after the cost of insuring similar notes jumped the most in Asia this year.
China’s onshore bond market experienced its first default as a solar-cell maker failed to pay full interest on its bonds, signaling the government will back off its practice of bailing out companies with bad debt.
As a young man during China’s Cultural Revolution, Jiang Jianqing was sent to the countryside to work as a farmer and a coal miner. This week, he arrives at the top of a Swiss mountain as chairman of the world’s most- profitable bank and representative of the most-populous nation.
The story of how a 3 billion-yuan ($496 million) Chinese trust investment wound up on the brink of default shows what billionaire investor George Soros has called the “eerie resemblances” between the 2008 global financial crisis and the nation’s debt market.
China faces many challenges in its efforts to maintain the health of the banking industry, including risks from local government financing vehicles, property loans and industrial overcapacity, bank regulator Liu Mingkang said.