Category Archives: debts

Asset-backed securities and its dangers on the rise – Ann Rutledge

China´s financial authorities are reviving so-called asset-backed securities (ABS) in a moderate pace. But ABS-expert Ann Rutledge warns in the China Economic Review against the dangers of this financial tool in the murky China financial markets.

Ann Rutledge joins China Speakers Bureau

Ann Rutledge, an acknowledged expert on dynamic structured credit modeling tools, has joined the China Speakers Bureau.

Bankruptcy: only way to reduce debt – Victor Shih

China is carrying a huge load of debts, and the only way out is to allow failing companies to go bankrupt, says financial analyst Victor Shih to Bloomberg. That fix should be part of the upcoming new 5-year plan, he says.

Debts hamper local governments – Victor Shih

Debts are high on the agenda of the central and local governments, as local resources to pay debts of get capital for investments diminish, tells associate-professor Victor Shih in Bloomberg. The efforts of the central government to relieve local governments from debts might not help everybody.

CIC got US$ 100 Billion to distribute over Silk Road projects – Sara Hsu

The China Investment Corporation (CIC) obtained 100 billion US$ bond issue from the Ministry of Finance to finance the One Road, One Belt initiative, writes financial analyst Sara Hsu in The Diplomat. Although CIC has been initially less successful, Hsu expects China´s largest sovereign wealth fund will be able to make a huge profit.

Football transfers under threat after market reshuffle – Victor Shih

The recent downturn in the stock market and the government restrictions on money capital transfers might hit transfers in China´s football leagues, says financial analyst Victor Shih to Associated Press. “It is a general problem for wealthy people in China who are major shareholders in companies,”

China´s unsustainable debts – Victor Shih

China has accumulated debts US$25 trillion and because of the relative high interest rates, that level of debt is unsustainable, argues financial analyst Victor Shih at the USC U.S.-China Institute. And when China gets into trouble, there is no IMF-style institution with enough capital to save it. A crashing stock market also does not help.

China´s fiscal deficit makes sense – Sara Hsu

China´s fiscal deficit will be the largest in six years. Financial analyst Sara Hsu explains why this is a good move, so it can encourage spending, she writes in the Diplomat.

Strains in China´s property market – Sara Hsu

Smaller developers are the first ones to feel the contraction of China´s real estate market, writes financial analyst Sara Hsu in the Diplomat. The US$23 million default of the Kaisa group might only be the beginning or more trouble.

Also land sales now scrutinized – Sara Hsu

President Xi Jinping anti-corruption drive has opened a new front as land sales by local governments are surveyed by the central government, notes financial analyst Sara Hsu in TripleCrisis, and she applauds the move. Much of the social unrest in the past years has been caused by those transaction, where citizens often lost from greedy officials.