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China debt crunch

China backs state-owned enterprises with $32bn in rescue funds

Move to quell investor concerns risks prolonging lives of 'zombie' companies

A coal terminal at a Hebei port: Coal mining companies face exposure to market swings.   © Xinhua/Kyodo

SHANGHAI -- China and its regional governments have created funds to help state-owned companies guard against defaults, readying 210 billion yuan ($32.5 billion) to alleviate financing constraints.

Tianjin established a 20 billion yuan fund in June, saying it aims to raise the market's confidence in the city's state-owned enterprises. The Guangxi Zhuang Autonomous Region invited experts to a meeting in April to discuss setting up a similar fund.

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