Troubled Chinese forestry company Sino-Forest Corp., which has been accused of being a massive fraud, said Thursday that its former chief financial officer David Horsley is no longer employed by the firm, The Canadian Press reported. Horsley, who stepped down as chief financial officer in April after receiving an enforcement notice from the Ontario Securities Commission, had continued to work at the company to help with its restructuring. No reason was given for his departure in the brief statement by Sino-Forest announcing the change.

Ecuador’s inability to borrow in international markets after its 2008 default is drawing the nation closer to China as the world’s largest commodities consumer grants loans in exchange for access to oil and metals, Bloomberg reported. Home to untapped copper reserves similar to those of Chile and Peru, the world’s top producers, Ecuador has signed loans for $7.3 billion from China since 2009, or about one-third of the Andean country’s annual budget, according to data compiled by Bloomberg based on government announcements.

China's bank lending rose strongly in August to a new record level for the month, a clear sign the government is trying to reverse an economic slowdown that threatens to cost jobs and undermine support for the Communist Party, the Irish Times reported. New local currency lending was 703.9 billion yuan (€87 billion) last month, the People’s Bank of China said in Beijing. That was more than the 600 billion yuan (€73.8 billion) analysts had expected, and outstripped July’s 540 billion yuan (€66.4 billion) lent in July.

Although Chinese lenders don't disclose how many loans they extend or modify, the practice is becoming increasingly popular, according to companies and banking executives. The strategy—called "extend and pretend" by critics—is raising alarms among analysts and bank investors, The Wall Street Journal reported. They warn that it could add to banks' increasing piles of bad loans and may restrict banks' ability to lend to bolster the slowing economy.

China Medical Technologies Inc., a maker of diagnostic products, filed for Chapter 15 foreign-firm bankruptcy protection in New York, listing as much as $500 million in assets and debts, Bloomberg Businessweek reported. China Medical, which makes products to monitor various diseases including cancer, also listed foreign bankruptcy proceedings pending in the Cayman Islands, according to a petition posted in U.S. Bankruptcy Court in Manhattan. Chapter 15 helps shield overseas companies from U.S. lawsuits and creditor claims while a company continues the process abroad.

China pledged to continue to buy European bonds in a bid to help the euro zone resolve its debt crisis, Chinese Premier Wen Jiabao said Thursday after meeting with visiting German Chancellor Angela Merkel, underscoring Europe's growing importance to the Chinese economy, The Wall Street Journal reported. But Mr. Wen stopped short of concrete pledges and noted that China's purchases would require "fully evaluating risk," suggesting that meaningful aid still can't be assured. Mr. Wen expressed worries over Europe's debt troubles at a news conference jointly held with Ms.

As China Cosco Holdings Co. prepares yet another earnings report awash in red, voices inside and outside are pushing China's champion of the world's shipping lanes to shore up its finances, The Wall Street Journal reported. Cosco is in little danger of collapse. More than half its stock is controlled by the Chinese government, which sees the shipping company as a major part of a national effort to gain greater sway over vital global supply chains.

China's four biggest banks, which rank among the world's most prolific lenders, are set to report first-half earnings, and investors are likely to gauge their health not by their profits but by how fast their loans are turning sour, The Wall Street Journal reported. Signs of rising bad debt, a key measure of how Chinese companies are faring amid the slowest growth since the financial crisis in 2008, already have pushed the shares of the four state-controlled banks down an average 19% from their highs this year in February.

When Wen Jiabao, the Chinese premier, announced this year’s annual growth target of 7.5 per cent in March, most analysts assumed he was being unduly modest and that the world’s second-largest economy would actually expand much faster, the Financial Times reported. The Chinese economy has consistently outperformed annual targets over the past decade, averaging close to 11 per cent growth over that time, despite the 2008-09 global financial crisis. But with activity cooling much more than expected in recent months the 7.5 per cent target is starting to look ambitious.

Shareholders of troubled timber firm Sino-Forest Corp. would receive nothing under a proposed restructuring plan that would transfer remaining assets to creditors, thestar.com reported. A once-mighty company with a market capitalization of $6 billion, Sino Forest is now in tatters as its former executives face fraud accusations that include overstating assets and sales in China. Sino-Forest says it is owed $887.4 million from authorized intermediaries, who operated on its behalf in China.