More from China: Rising defaults, hidden debt, banks pull out of investments

A couple of pieces in Bloomberg on China, neither of them uplifting 😀
Rising defaults in China are unearthing hidden debt at companies
– Small firms that can’t get loans by themselves have been winning banks over by getting other companies to guarantee their borrowings. The companies making those pledges exclude them from their balance sheets, leaving creditors in the dark. Borrowers often extend the guarantees for each other, raising the risk that failures could ricochet, at a time when increasing borrowing costs have already added to strains.