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China debt crunch

China's debt-heavy companies pay price for running afoul of Xi

Beijing's sway over banks triggers cash crunch for appliance seller Suning

Chinese President Xi Jinping and top party leaders are concentrating economic power in the hands of the party and state-owned enterprises. (Source photos by Getty Images and Xinhua/Kyodo) 

SHANGHAI -- On Dec. 11, many investors were relieved to see a news release from Suning Appliance Group, China's biggest consumer electronics retailer, saying that it "has transferred money to its accounts to redeem the corporate bonds maturing on Dec. 16."

Suning has been losing ground as more people shop online. The company had short-term debts worth nearly 37 billion yuan ($5.6 billion) at the end of June, whereas its cash and deposits stood at 36.5 billion yuan.

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