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IN EARLY 2006, Citi made a classic China error: entered into in haste, repented at leisure. In tandem with a clutch of investors including Credit Suisse, Japan’s Aozora Bank and hedge funds Income Partners, Citadel Investment Group and PMA Investment Advisers, the US banking group cobbled together a $160 million loan for one of mainland China’s fastest-growing industrial firms, FerroChina.
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