1. Zhuhai has mobilized more than 40 billion yuan ($6 billion) to support Zhuhai Huafa Group, its largest city-owned company, after a debt scare rattled China’s bond market. The intervention has left unresolved the question of how a fiscally strained local government can stabilize a sprawling conglomerate carrying 404.7 billion yuan in interest-bearing debt. Huafa’s assets exceed 750 billion yuan, and its businesses range from housing and infrastructure to technology and financial services, making its troubles more complicated than those of a conventional property developer. [para. 1][para. 2]
2. Huafa’s liquidity problems surfaced publicly on Oct. 26 with reports of overdue payments on nonstandard financing. Its domestic and offshore…