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China companies defy stimulus efforts by borrowing to save

Households also blunting effectiveness of monetary easing in reviving economy

A branch of China Construction Bank in Wuhan. Data shows a lot of Chinese bank lending is not finding its way into the real economy as businesses and households hoard cash   © Reuters

HONG KONG -- Chinese companies are hampering official efforts to revive the economy during the coronavirus pandemic by borrowing from banks and hoarding cash at higher interest rates instead of channeling it into their businesses.

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