As Beijing steps up its efforts to wean the Chinese economy off an excessive debt-rich diet it seems ready to exchange short-term pain for long-term gain.
That includes killing off some peer-to-peer lenders and by extension paring down some of the higher-risk debt in the comparatively neglected household sector.
For the most part, public discussions around China’s deleveraging campaign have been at the institutional level, namely Beijing’s attempts to place a tighter grip on local government financing, rein in corporate debt, and press state-owned enterprises into debt-for-equity swaps.
In that respect China has made some progress, with corporate...
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