For years now, economists have worried that China’s debt has pushed it to the brink of financial crisis. But if China is insolvent, why haven’t there been any big defaults yet? Here’s why: China’s shadow lending system keeps credit pumping to insolvent companies, so no one can tell that they’re bankrupt. Those loans take place off […]

via Quartz http://qz.com/160129/how-the-5-billion-bankruptcy-of-a-chinese-coal-companys-could-trigger-financial-panic/