Analysis: Forced lending to China SMEs may risk more harm than good

Beijing's strategy to reroute money away from state-owned giants towards smaller firms to help fuel the economic transformation behind its reform plans is less of a success than it may seem on the surface.Lending has increased in line with Beijing's orders. Butbanks have found loopholes allowing them to lend to state-owned firms and some borrowers are local-government-owned, operating in saturated sectors Beijing is trying to consolidate, aggravating the risks facing the financial sector rather than alleviating them.