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China debt crunch

China's Suning.com gets bailout from local governments and Alibaba

Suppliers join in rescue of debt-strapped retailer of appliances and electronics

Shares of Suning.com jumped by the maximum 10% on July 6, as trading resumed after a three-week halt. (Source photos by AP and Reuters) 

HONG KONG -- Troubled Chinese retailer Suning.com has secured a $1.4 billion bailout, backed by local government funds, suppliers and Alibaba Group Holding, as Beijing seeks to calm jittery debt markets that could undermine economic momentum.

Suning.com, a leading seller of home appliances and consumer electronics, said in a filing Tuesday that billionaire founder Zhang Jindong, his trust and two of his Suning holding companies had agreed to yield their controlling interest in the retailer, with a 16.96% stake to pass to a consortium led by the government of Jiangsu Province and the state asset management committee of Nanjing, the provincial capital where Suning.com is based.

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