How M&A debt doping could hurt China’s banks

Chinese firms are taking out more debt on sometimes already leveraged balance sheets to support M&A even as Chinese banks see bad debts mount. What could possibly go wrong?

How M&A debt doping could hurt China’s banks

How long before the first major default of a Chinese corporate or of one of their expensively assembled acquisitions

Those questions must linger unpleasantly in the minds of bankers as a succession of mainland Chinese companies come to market with debt-reliant MA bids for international companies.

The latest was Zoomlion, which on Wednesday confirmed that in January it had made a $3.3 billion tilt at US crane maker Terex, in an...

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