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Wenzhou's reckoning over debt Add to ...

In June, three factory bosses in the entrepreneurial city of Wenzhou, China, confronted with debts they couldn't pay, disappeared without a trace. Spooked, the 'shadow banks' or lenders of last resort -- pawn shops, credit companies, even loan sharks -- started calling in their high-interest loans. More than 100 bosses are now in hiding or have fled -- and as China reins in spending and growth to fight inflation, the problem may get worse.

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