First saw this on ZH, so I started looking for different sources. Seems an "investment product" in China that bundled and sold shares in a $126 million loan to a failing coal company hasn't seen a cent of its money returned, and has been defaulting on payments to investors for months. We're just now hearing about it in the West.
I was curious why physical gold demand from China remained high after the Lunar New Year, and I think this may be why. Analysts have been warning that defaults in the off-the-books "shadow banking" sector could be a Chinese Lehman Bros. moment, because all those companies that can't get a bank loan to finance debt will see the secondary credit market disappear overnight. This will lead to a purging of the Chinese commercial and manufacturing sector that may lead to some really ugly times. The emerging markets haven't seen *anything* compared to what this will bring on.