Zhou Xiang is playing with his mobile phone in a room just big enough for a desk and chairs at the year-old Wenzhou Private Lending Registration Center. Not a single prospective customer has shown up for hours.
China’s Supreme Court suspended the death sentence for Wu Ying, a woman whose conviction for defrauding investors of $55.7 million highlighted the country’s shadow-banking system and sparked a debate on the use of capital punishment for nonviolent criminals.
Jiang Xiangsong has 18 days to pay a 2 million yuan ($314,000) bank debt or his suitcase company in eastern China will go bankrupt. He’s close to tears as he realizes his last hope, a government-backed office, won’t help.
Smaller privately owned companies in China’s Zhejiang province are paying almost five times the central bank’s benchmark borrowing rate on loans from non- banking institutions, a local government report said.
When a Chinese court sentenced 28- year-old Wu Ying, known as “Rich Sister,” to death for taking $55.7 million from investors without paying them back, it sparked an unexpected firestorm that has drawn in China’s top leadership.
China cut borrowing costs for the first time since 2008 and loosened controls on banks’ lending and deposit rates, stepping up efforts to combat a deepening slowdown as Europe’s debt crisis threatens global growth.