China’s debt milestone as the first company defaults

In most countries a corporate debt default would barely register: after all, companies often go bust. But in China they have so far not been allowed to collapse. So last week’s news that struggling solar-equipment maker Shanghai Chaori had been unable to make a full interest payment, and was therefore in default, is a real milestone.

China’s corporate debt has grown to around $12 trillion. Its government cannot feasibly stand behind every loan. Apart from anything else, a belief the state will step in if things go wrong encourages companies to take unnecessary risks. Since taking charge of China a [...]

MoneyWeek magazine

Latest issue:

Magazine cover
Paying by mobile

Why your phone will replace your wallet

The UK's best-selling financial magazine. Take a FREE trial today.
Claim 4 FREE Issues
Shale gas 'fracking' promises to transform Britain's energy market. Find out what it is, what it means, and how to invest.

Which investment platform?

When it comes to buying shares and funds, there are several investment platforms and brokers to choose from. They all offer various fee structures to suit individual investing habits.
Find out which one is best for you.