It appears that senior executives in China are using their personal balance sheets to help the property development companies they own make their interest payments on time as regulations and market financing conditions have created liquidity issues for many such companies. According to news coverage, this is unlikely to happen in the United States given the legal structure afforded by "limited liability."
It's a bit unwieldy to describe. Essentially, regulators want this to happen to an extent. Perhaps this is a reflection that private wealth is not ring-fenced in China and/or personal ownership of assets doesn't have a robust legal framework. One expert had this to say:
"In China, regulators can pressure the large or controlling shareholders to mix their personal assets with the company’s and treat the two as inseparable,” said Zhiwu Chen, director of the Asia Global Institute at the University of Hong Kong. “It’s also partly because the controlling shareholders, especially founders, often do treat the company’s assets as if they were their personal property."
I'm not seeking the exact Chinese law name or anything. Just a consensus framework to analyze this situation (using private wealth to recapitalize a company of which they are a major shareholder) in legal terms.
For this to even be possible, we would say that China lacks a notion of a limited-liability-company and instead has what for its stance on eligible debt servicing sources? (essentially looking at alternative frameworks, i.e. if it's not limited liability framework, how might we categorize this legal framework as it stands in China)