Coronavirus-Led Slowdown Tests the Mettle of China’s Shadow Banks

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Coronavirus-Led Slowdown Tests the Mettle of China’s Shadow Banks
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Several finance companies and lending platforms in China have told investors they can’t produce promised returns

March 22, 2020 8:24 am ET

Cracks are forming in China’s sprawling shadow-banking sector, as the coronavirus epidemic drains economic activity around the country and pressures lenders that many private firms have relied on for years. Since early February, several finance companies and online lending platforms have told investors they can’t produce the returns they previously promised, due to rising distress among businesses they funded.

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