Homepage
PR Newswire
Hi guys and hopefully gals too,
thanks for talking about this thread again. went and googled and found this article that discusses some history of chinese banking from 1990s and surprised that the "bail-out" bank is gonna IPO and sell some shares to Goldman Sachs and even to Malaysian sovereign wealth fund Khazanah which bought the dying Malaysia Airlines.
I think "Shadow Banking" is a much sexier phrase than "China Banks" but since GG is the one updating us with the latest news feeds on economic happenings, I dun mind if moderators change the thread title to what he has requested
=========================================================
Last updated: August 31, 2014 9:05 pm
China’s bad bank clean-up crew
By Jamil Anderlini and Gabriel Wildau
The prospect of the first ever default in China’s rapidly expanding shadow banking sector sent shockwaves through financial markets this year.
As word spread that a Rmb3bn trust product called “China Credit Equals Gold #1” was on the verge of defaulting, investors began to question the stability of China’s entire financial system.
But just days before the scheduled default, a mystery buyer bailed out the product, allowing investors to get back all the principal and most of the interest they were owed.
The Financial Times has learnt that the covert saviour, not publicly identified until now, was Huarong Asset Management, one of four “bad banks” set up in the late 1990s to deal with an enormous load of non-performing loans in the banking system.
More than five years into one of the biggest credit booms in history, Chinese banks are bracing for a fresh wave of bad debt that some analysts and economists believe could rival that of the late 1990s.
Read more here
thanks for talking about this thread again. went and googled and found this article that discusses some history of chinese banking from 1990s and surprised that the "bail-out" bank is gonna IPO and sell some shares to Goldman Sachs and even to Malaysian sovereign wealth fund Khazanah which bought the dying Malaysia Airlines.
I think "Shadow Banking" is a much sexier phrase than "China Banks" but since GG is the one updating us with the latest news feeds on economic happenings, I dun mind if moderators change the thread title to what he has requested
=========================================================
Last updated: August 31, 2014 9:05 pm
China’s bad bank clean-up crew
By Jamil Anderlini and Gabriel Wildau
The prospect of the first ever default in China’s rapidly expanding shadow banking sector sent shockwaves through financial markets this year.
As word spread that a Rmb3bn trust product called “China Credit Equals Gold #1” was on the verge of defaulting, investors began to question the stability of China’s entire financial system.
But just days before the scheduled default, a mystery buyer bailed out the product, allowing investors to get back all the principal and most of the interest they were owed.
The Financial Times has learnt that the covert saviour, not publicly identified until now, was Huarong Asset Management, one of four “bad banks” set up in the late 1990s to deal with an enormous load of non-performing loans in the banking system.
More than five years into one of the biggest credit booms in history, Chinese banks are bracing for a fresh wave of bad debt that some analysts and economists believe could rival that of the late 1990s.
Read more here
Virtual currencies are worth virtually nothing.
http://thebluefund.blogspot.com
http://thebluefund.blogspot.com