Pressure is mounting on companies whose behavior could pose a risk to China’s financial system. HNA’s insolvency is the largest China has seen since the country first began using its bankruptcy law in 2007, according to Michelle Luo, a bankruptcy lawyer at Hui Ye law firm. It will also test the law’s strength — just 76 companies have gone through bankruptcy proceedings in China, Alexandra Stevenson reports for The New York Times. Xi Jinping, China’s top leader, told a meeting of the country’s senior Communist Party officials late last month that the government must anticipate risks even as it pursues growth. He urged officials to make plans to deal with “gray rhinoceros” events, referring to large and evident problems in the economy that are ignored until they become urgent threats.

Source: New York Times February 08, 2021 12:33 UTC