Dalian Government 's Intervene is likely to Raise the Banking Risks
ANBOUND
Due to its RMB 4 billion yuan overdue loan, the South Korean STX Corporation's shipbuilding base in Dalian is suffering from capital predicament. In responding to the problem, the Dalian government requires the banks to withhold their loan withdrawal and to continuously renew the loan to the company. Without doubt, such intervention is likely to heighten the banking risk in China.