In China's debt?

Posted By David Bosco Monday, May 15, 2006 - 1:26 PM Share

Last week, I blogged briefly about a report by Ernst & Young on China's looming bad loan problem. It painted a grim picture of China's banking system, which is lending too much and collecting too little. For its part, the People's Bank of China trashed the report, calling it "ridiculous and barely understandable." Now, Ernst & Young has withdrawn it, claiming it was not properly reviewed. It's a bizarre sequence of events, to say the least, and I can't help wondering what kind of pressure China brought to bear on Ernst & Young.

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