Shadow-banking bailout chills emerging markets

Emerging markets slumped in recent days thanks to turbulence in China's shadow-banking system.

A struggling $500m Chinese investment vehicle known as a trust product has secured a last-minute bailout, potentially averting a bigger crisis.

Credit Equals Gold No. 1, which had been marketed to rich individuals, had promised an annual return of 10% for three years. It was based on loans to a coal miner that collapsed, along with the price of coal. Investors will get most of their money back, thanks to a bank and a local government coming to the rescue.

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