Foreign banks turned off the taps after Beijing repudiated guarantees that local officials extended to creditors of their investment arms. Investors will be closely watching an international conference in Guangzhou Nov. 13. Guangdong companies make up about a third of all mainland enterprises in Hong Kong. There's something wrong from the core business to almost everything. It strikes me that it invests for investment's sake.
Nobody does any follow-up work.
Most of the loans were granted without legal backing and proper documentation. At the same time, mainland executives in Hong Kong are under tremendous pressure from their bosses back home. Your province doesn't care if there's a financial crisis. If you can't make money in your core steel-making business, try your hand in stocks and property. Many apparently made brash investment decisions.