China’s Easy Money Flows Abroad as Credit Squeeze Hurts

Kevin Gallagher, College of Arts & Sciences

As China’s cash squeeze claims victims across the nation — from a bailout-seeking shipyard to a solar-panel maker missing a bond payment — there are places where Chinese money remains cheap and plentiful…

Expert quote:

“As opportunities go down and risks go up at home, these policy banks have gained a lot of power and they want to sustain themselves. The majority of the countries that are getting the finance are countries with bond spreads that are through the roof.”

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