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The South China Morning Post reported in August that Agricultural Bank of China, a major state lender, had agreed a credit line of 250 billion yuan ($42-billion) to the City of Shanghai in an effort to boost the local economic engine.
The South China Morning Post reported in August that Agricultural Bank of China, a major state lender, had agreed a credit line of 250 billion yuan ($42-billion) to the City of Shanghai in an effort to boost the local economic engine.
(REUTERS)

CARL MORTISHED

China solves credit crisis with more credit

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If you are feeling reassured about the apparent Chinese recovery, think again. China is making more steel, a lot more steel, mountains of the stuff. A leap in steel output was a big component of the surge in industrial production announced by the national statistics bureau this week. But China’s steel makers have been losing money, pouring more liquid metal into a global supply glut. So, where is the demand for all this new steel, you might ask?