Rusal Chief Warns Stock Rout Only First Act of China Drama
- Too much lending spurs excess capacity in steel, aluminum
- Over-production has led to surge in exports onto world market
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Oleg Deripaska, the chief of Russia’s largest aluminum producer, says the equity rout may only be the first act of a drama unfolding in Chinese financial markets.
Deripaska, the billionaire president and largest shareholder of United Co. Rusal, is concerned the excessive lending that has spurred overcapacity in China’s steel, aluminum and cement industries will lead to problems servicing the debt.