TyB
>thanks for late add on UBS..messy using phone so appreciate patience
>>19966602 pb
China Races to End Property Panic, Fill $446 Billion Funding Gap
Chinese leaders are making their most forceful push yet to end the nation’s property crisis, ramping up pressure on banks to plug an estimated $446 billion shortfall in funding needed to stabilize the industry and deliver millions of unfinished apartments. Policymakers are finalizing a draft list of 50 developers eligible for financial support that includes Country Garden Holdings Co. and Sino-Ocean Group and indicated a pivot by Beijing to help some of the most distressed builders. Meanwhile, the country’s top lawmaking body said banks should increase funding for developers to reduce the risk of additional defaults and make certain that housing projects get completed.
Chinese President Xi Jinping steps up support for the broader economy, moves this week indicate a widening of support with efforts to put a floor under the property crisis that’s plagued the nation’s finance industry for years. While developer stocks climbed in recent days, many investors remain wary authorities haven’t gone far enough yet to rekindle growth in a vital area for the broader economy and the push is likely to further squeeze profits at the nation’s largest lenders.
The $56 trillion banking industry has been battling shrinking margins and rising bad loans since they were drafted by authorities to backstop the economy and prevent risk spillover from the sluggish property sector. Authorities had guided banks to trim deposit rates three times over the past year to ease their margin pressure, and slashed banks’ reserve requirements twice this year to boost their lending capacity.
Net interest margins of the big state-owned banks dropped to a record low 1.74% at the end of the first half of 2023, below the industry’s 1.8% threshold seen as necessary to maintain a reasonable amount of profitability.
The sector’s shares have taken a beating. A Bloomberg index of Hong Kong-listed Chinese banks tumbled as much as 18% this year from a high in May, while the big four state banks remain near record low valuations of about 0.4 of their book value. (Book value is just what they or what other analysts say they are work: mark-to-model)
https://www.bnnbloomberg.ca/china-races-to-end-property-panic-fill-446-billion-funding-gap-1.2002406
From the link at top
>(There was some big meeting a few weeks ago that Xi attended at the PBOC-where he’s only been a few times officially-and all the insolvent property companies begged to be bailed out and extended moar “loans”-meanwhile they (PBOC) been buying up yuan so it went up in value by 2% in one week-they are getting closer to losing control of the prop markets and that is 70% of its stated GDP)
And as the buyer (unlike here) before it is built you sign purchase agreement and pay monthly mortgage from that point on. All state owned mortgages from CCCP owned developers
You hope they build it and most are crap-called Tofu Dreg construction-literally crumble when you touch structural walls etc.
Plenty of examples of that all over net
Gigantic Ponzi scheme that ran out of new money
They’ve been the whipping post for religious, political, resource, history suppression, dumping ground (it’s a long list) so that seems to have been it (last straw)and knowing a decent portion of its real history don’t blame them one bit.
Just what the crown (not the royals) have done to that country would be enough. Have had tremendous patience for hundreds of years imo
KYS
That took a lot of effort that response I know
British investment managers get green light for tokenised funds
(THIS is the beginning of the end as if this gets adopted across anything moar than 15-20% of all asset classes it will be almost impossible to extract ourselves out of it-(((they))) want to tokenize the entire financial system that includes the almost $4 quadrillion amount of derivatives and once they do that-still a big IF-it will be very hard to remove it as once it (asset) becomes a token it is not yours any longer and can be rehypothecated to infinity basically and they just point you to the digital I’d that “proves” it is yours. You think the leverage and lack of compliance at FTX and Binance is/was bad?…this is the start of something many multiple times worse-great for bankers as what little enforcement of rules is completely gone because “muh blockchain tech” but horrible for normal people)
British investment managers have got the go-ahead to develop tokenised funds, in which assets are split into smaller tokens backed by blockchain technology, the industry's trade body said on Friday.
Tokenisation, or fractionalisation, of funds will enable a fund's assets to trade more cheaply and transparently and investors to buy into a wider range of assets, industry proponents say.
Funds authorised by Britain's Financial Conduct Authority can take the first steps towards offering tokenised funds, provided the investments are in mainstream assets and valuation and settlement arrangements don't change, the Investment Association said in a statement. Fund tokenisation has great potential to revolutionise how our industry operates, by enabling greater efficiency and liquidity, enhanced risk management and the creation of more bespoke portfolios," said Michelle Scrimgeour, chief executive of Legal & General Investment Management .
Scrimgeour is chair of a working group which is working with the FCA and Britain's finance ministry to open up opportunities for tokenised funds. Other members of the working group include BlackRock (BLK.N), M&G (MNG.L) and Schroders (SDR.L)
Blockchain is a digital ledger that records ownership of tokens. So far, its main use has been for cryptocurrencies, which remain a relatively small part of the global financial system.
Britain is looking to bolster liquidity in its asset management sector in a revamp of its rules following Brexit. Investment managers and exchanges in the United States, Europe and Asia have already taken tentative steps in offering tokenised funds.
https://www.reuters.com/markets/british-investment-managers-get-green-light-tokenised-funds-2023-11-24/