Will China Huishan Dairy’s lurch towards provisional liquidation trigger an exodus of foreign capital from the world’s second largest economy?
Major Chinese and international banks are bracing themselves for a bruising battle after the debt-laden Huishan told the Hong Kong stock exchange last week that it had instructed its Cayman legal advisers to prepare documentation to place the company into provisional liquidation.
Although the exact figures are not known, the giant dairy company’s debts are estimated to be at least 38 billion yuan ($7.6 billion), eclipsing the company’s total assets which are estimated to be worth some 26 billion yuan.
Huishan’s move which has sparked fears that other debt-laden Chinese companies ar…
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