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China vows to guard financial stability after big-name defaults

State-backed companies account for 40% of total this year

SHANGHAI -- China has pledged to step up monitoring of financial misconduct to ensure system stability after a series of high-profile defaults by state-backed companies sent shock waves across the country. 

China's corporate defaults have reached 157 billion yuan ($23.9 billion) so far this year and are on track to surpass last year's record 167 billion yuan. State-owned companies, including miner Yongcheng Coal & Electricity Holding Group, chipmaker Tsinghua Unigroup and Huachen Automotive Group Holdings, account for 40% of the total.

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