Bank of China agreed to pay €3.9 million to settle a French probe into allegations it turned a blind eye as customers moved millions to their Asian accounts without paying European taxes, The Irish Times reported. The lender will pay a €3 million fine and €900,000 in damages to French tax authorities to put the criminal allegations behind it, Paris prosecutor Remi Heitz said. The case will continue against 28 business owners and intermediaries involved in transferring the funds to China, Mr Heitz said Tuesday in a statement.

India and China have been hit by a surge in consumer prices that, together with a slowdown in growth, has sparked fears of “stagflation” in the world’s two most populous countries, the Financial Times reported. If the Asian powerhouses were to be overtaken by the phenomenon — rising prices in a stagnant economy — their slowing economies would pose a grave threat to global growth. The prospect of stagflation has haunted Beijing for the past six months. China’s economic growth is at a 29-year low and consumer price inflation remains above 4 per cent.

When John Zhao sealed the £900m takeover of the UK’s PizzaExpress in 2014 he burnished his reputation as a pioneer in China’s private equity industry, the Financial Times reported. Two years later Hony Capital, his buyout firm, ploughed money into WeWork as the New York shared-office provider set its sights on an aggressive expansion in China. Both deals shared a simple premise: take well-known western brands to China and they will flourish.

The Chinese group buying British Steel has reached an agreement with trade unions over its rescue of the failed manufacturer, as it races to wrap up a takeover by the end of next month, the Financial Times reported. Executives from Jingye and union officials have reached an understanding for the basis of new employment contracts and other aspects of a turnround plan, three people with knowledge of the discussions said.

While fears over coronavirus continue to spread in China (and just now, in Taiwan), there’s news of another ailment watchers of the People’s Republic have been concerned about for the past decade: corporate debt, the Financial Times reported in a commentary…Chinese property giant Evergrande Group is paying as much as 12 per cent in its latest overseas bond issuance to raise $2 billion for debt repayment.

Investors will be closely watching HNA Group Co. as $500 million of dollar bonds mature this week, testing the debt-laden Chinese conglomerate’s repayment ability, Bloomberg News reported. A $200 million bond issued by HNA Group International will come due Jan. 23, while its $300 million note is set to mature a day later, according to Bloomberg-compiled data. HNA Group International declined to comment when reached by Bloomberg via email. HNA Group Chairman Chen Feng predicted last month that 2020 will be “the decisive year to win the war” against its long-running liquidity challenges.

Wang Yizhi sensed an opening last July when local investors raced to dump the debt of Future Land Development, a Shanghai-based developer, after the arrest of its founder on sexual abuse charges, the Financial Times reported. Shortly after the scandal broke, Mr Wang, general manager of Raman Capital, bought four-year bonds for 88 cents on the dollar. Within weeks, he had sold them for 95 cents, after the developer put dozens of projects on sale to improve its cash flows.

Most of China’s provinces are expecting slower economic growth in 2020, underlining the nationwide trend which is expected to result in a tweaking of the formal goal when the legislature meets in March, Bloomberg News reported. Twenty-two of 31 major cities, provinces and autonomous regions have so far cut their 2020 target for gross domestic product expansion, according to their work reports which lay out plans for this year. Twelve provinces, which made up 42% of China’s economic output at the end of September last year, expect growth at around 6% or lower this year.

Amid rising defaults and tighter liquidity for Chinese privately-owned enterprises, the nation’s banks are letting some companies fail, something Deutsche Bank AG says presents bigger opportunities for foreign investors in troubled debt, Bloomberg News reported. The German lender is an active distressed player in Asia Pacific and has bet on some of the biggest restructuring in the region, including commodities trader Noble Group Ltd. China is taking steps to allow more foreign investment into the country’s 2.37 trillion yuan ($344 billion) non-performing loan market. It will give U.S.

Shandong Ruyi is facing serious disruption to its access to cotton supplies after the company, once hailed as the “LVMH of China”, was placed on an industry blacklist that will halt much of its trading in the commodity with major global groups, the Financial Times reported. Details from a recent arbitration case with a Bangladeshi group, in which Shandong Ruyi was ordered to pay compensation but has not, have also shone a spotlight on the extent of the Chinese company’s difficulties in paying off debts.