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Five things to know about how China is tackling 'too-big-to-fail'

Work proceeding on 'living wills' for financial institutions, but details fuzzy

High-profile bailouts have sent shock waves through China’s financial sector and capital markets. (Source photos by Reuters)

Bailing out failed financial institutions has been a big headache for China's financial regulators over the past three years, as they have tried to protect the financial system from the risks posed by massively indebted companies. Two of the highest-profile rescues have been of Anbang Insurance Group, and Baoshang Bank. Others that have been or are being restructured by national-level regulators or local governments include Hengfeng Bank and Bank of Jinzhou.

The takeover and restructuring of Anbang, whose collapse was brought about by an aggressive, debt-fueled expansion undertaken by its now-imprisoned founder, began in February 2018 and took two years to complete as regulators and financial experts struggled to untangle its complex and opaque operations.

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