dChan
Anonymous ID: 1e67b1 Feb. 15, 2020, 8:36 p.m. No.8151507   🗄️.is 🔗kun   >>1657 >>1933 >>2066 >>2145

China calls on foreigners to drain $1.5tn bad-debt swamp

 

Goldman, Oaktree and Lone Star see massive buying opportunities.

I'm sure they do!!

 

Over the past six months, executives at Hong Kong-based investment firm SC Lowy have been inundated with calls from bankers in China hoping to sell them distressed debt.

 

That is a first in the 11 years since the $2 billion firm was established and underscores how China, after spending two decades trying to clean up bad debt by itself, is finally warming up to foreign capital. The recent phase one trade agreement with Washington paves the way for U.S. financial services companies to apply for asset management licenses that put them on par with their Chinese peers when it comes to buying distressed debt. Once an asset management license is granted, U.S. institutions can directly buy nonperforming loan portfolios from banks and bypass the Chinese companies that currently act as middlemen.

 

Warnings are galore, too, with critics such as Republican U.S. Senator Marco Rubio of Florida urging caution when it comes to buying soured Chinese loans. "A majority of Chinese nonperforming loans go to state-owned enterprises," Rubio wrote last month in an opinion piece for The New York Times. "In the past, when a Chinese bank struggled with financing nonperforming loans on its books, Beijing had to bail it out with Chinese money. But now, under this accord, American savings can do it." PricewaterhouseCoopers estimates China's nonperforming loans and other stressed assets at $1.5 trillion as at the end of 2019 and says the figure has yet to peak. Foreign players such as Oaktree Capital Management, Lone Star Funds, Goldman Sachs, Bain Capital, PAG and CarVal Investors have already moved into the market, and others such as Nomura Holdings and Deutsche Bank see it as an opportunity.

 

Savills Research in a note said that purchase of bad-loan portfolios by foreign players nearly tripled in 2018 to 30 billion yuan from the previous year. That could increase further if investors get clarity on collateral management, pricing and legal recourse, analysts say. "The local liquidity in China is clearly drying up," said Soo Cheon Lee, SC Lowy's chief investment officer. "Over the last six months, we've received an increasing number of inquiries from brokers based in the mainland seeking our investment in distressed debt. This is a marked change for a market which over the past few years has tried to tackle the bad-debts challenge locally," he said. That approach has only delayed and multiplied the problem. Banks powered much of the economic expansion over the past few years, and regulators ignored loose lending as banks used the growth in loans to keep headline numbers in line with levels prescribed by regulators. But with a slowdown well underway, the challenges are fanning out.

 

For the first time in two decades, authorities last year had to intervene and bail out lenders, with Baoshang Bank, Bank of Jinzhou and Hengfeng Bank all needing help. S&P Global Ratings said in a report late last month that more banks will need to be recapitalized, with China Bohai Bank, China Zheshang Bank and Shengjing Bank likely to come under more pressure.

rest at link

https://asia.nikkei.com/Business/Industry-in-focus/China-calls-on-foreigners-to-drain-1.5tn-bad-debt-swamp

Anonymous ID: 1e67b1 Feb. 15, 2020, 9:11 p.m. No.8151757   🗄️.is 🔗kun   >>1933 >>2066 >>2145

China reports fall in new virus cases for 3rd straight day

 

China reported Sunday a drop in new virus cases for the third straight day, as it became apparent that the country's leadership was aware of the potential gravity of the situation well before the alarm was sounded.

 

After Chinese President Xi Jinping played a muted public role in the early days of the epidemic, state media published Saturday evening a speech Xi delivered Feb. 3 in which he said he gave instructions on fighting the virus as early as Jan. 7.

 

The disclosure indicates top leaders knew about the outbreak's potential severity weeks before such dangers were made known to the public. It was not until late January that officials said the virus can spread between humans and public alarm began to rise.

 

There are 2,009 new cases in mainland China, bringing its total number of confirmed cases to 68,500, according to the country's National Health Commission.

 

The fatality rate remained stable with 142 new deaths, the commission said. The death toll in mainland China from COVID-19, a disease stemming from a new form of coronavirus, now stands at 1,665. In all, 9,419 people have recovered and been discharged from hospital.

 

China's fall in new cases follows a spike of more than 15,000 on Thursday, when the central province of Hubei adopted a new diagnostic method that includes clinical diagnoses in its official account. Overwhelmed by suspected cases, the province has not able to test every person exhibiting symptoms. The clinical diagnosis is based on doctors' analysis and lung imaging and is intended to allow probable cases to be treated as confirmed ones without the need to wait for a lab result.

https://mainichi.jp/english/articles/20200216/p2g/00m/0in/004000c

Anonymous ID: 1e67b1 Feb. 15, 2020, 9:36 p.m. No.8151933   🗄️.is 🔗kun   >>1955

#10435

>>8151505 Boatfag update

>>8151507, >>8151657 China calls on foreigners to drain $1.5tn bad-debt swamp

>>8151576 Philippines' Duterte says Trump deserves to be re-elected

>>8151586 No dialogue for now as Saudis, Iranians camp on positions

>>8151649, >>8151859 pf reports

>>8151687 (Bangladesh) Human Trafficking: Special tribunals to ensure speedy trials

>>8151757 China reports fall in new virus cases for 3rd straight day

>>8151803, >>8151852 Rudy G. twat

>>8151845 Gun Rights Activists Crash Bloomberg Rally in Virginia, Chant ‘Guns Save Lives’-gateway pundit

 

>>8151900

here are the notes from dis bred.. fucker doesn't even know those are last bred