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Insight: China’s steel traders expose banks’

By Ruby Lian and Kelvin Soh SHANGHAI/HONG KONG | Sun Sep 2, 2012 6:00pm EDT (Reuters) – China’s banks are coming after the country’s steel traders, hauling executives into court to chase down loans that some traders said they didn’t initially need and can’t now repay. The heavy push to recover the loans is another sign of strain on China’s financial system at a time when the country’s leaders are contemplating another round of stimulus to boost the economy, and when banks are worried about bad debts piling up. The battle between the banks and steel traders also exposes flaws in the…

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