Banks are reluctant to lend, so cash-rich Chinese firms are stepping in to fill the void,...

|By:, SA News Editor

Banks are reluctant to lend, so cash-rich Chinese firms are stepping in to fill the void, loaning money to local businesses and turning quite a profit in the process. The problem is that weakness in the economy, or a burst property bubble, could cause a domino effect of defaults, damaging not just China's shadow financing system but the country's overall growth.