China's credit guarantee agencies plagued by related party lending

Shanghai Industrial Economic Assurance Company''s Liu Yihe explains the intricacies of risk management in China.

Dan Slater

November 27, 2003

The loan guarantee agencies are part of a system where business entities can offer to guarantee a loan for an SME, or even a listed company, from a bank. How successful has it been? And by checking on the credit worthiness of a company, aren't you essentially doing the work of the banks?

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