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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.

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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