China’s lenders are in deep trouble leaving Xi with hard choices

News Snapshot:

Late last year, Beijing’s top decision makers, including President Xi Jinping, promised to increase fiscal and monetary support for the country’s flagging economy. They pledged to “actively and prudently resolve real estate risks” and help real estate firms to meet their “reasonable financing needs”. And they urged the construction of government-subsidised affordable housing be accelerated. Hopes of increased Chinese government stimulus has helped push the price of iron ore above $US140 a tonne. All the same, Beijing has been reluctant to provide direct financial assistance to cash-strapped developers to let them complete tens of millions of unfinished apartments, and to...