China's banks withdraw from risk sectors

MANY ECONOMISTS - agree that Beijing will show “forbearance” toward China’s distressed corporate borrowers, but the same people also agree that Beijing will not be able to forestall a collapse of confidence should an unforeseen “black swan” event occur. For China, the “black swan” could come in the form of a fraud in peer-to-peer (P2P) lending or in China’s online payment systems, such as Alipay. A new scandal would almost certainly lead to destruction of consumer confidence, they say . . .