A liquidity crunch in China would hurt global activity, from the sales of commodities to luxury goods
Part of what makes China’s financial industry daunting is its size. Banking assets have ballooned to about $50trn and they sit alongside a large, Byzantine system of shadow finance. Total credit extended to firms and households has soared from 178% ofa decade ago to 287% today. The industry suffers from opacity, a lack of market signals and the erratic application of rules. Property is part of the problem.
With an illiquid portfolio of property projects financed by $300bn of liabilities, 80% of them short-term, Evergrande has a huge liquidity mismatch. It has struggled to cope with new government rules designed to curb excessive borrowing in the real-estate industry but which may now have backfired.and Citigroup.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Opinion: America’s policy toward China is misdirected, because it would actually strengthen China and weaken the United StatesOPINION: The real business-related challenge the U.S. faces vis-à-vis China is the tradeoff between national security and the benefits of economic exchange.
Read more »
China Evergrande’s Flagship Business Resolves an Onshore Bond PaymentEmbattled China Evergrande Group’s flagship property business said it would make an interest payment on an onshore bond
Read more »
FBI director says new probes into China launched 'every 12 hours''The greatest long-term threat to our nation’s information and intellectual property, and to our economic vitality, is the counterintelligence and economic espionage threat from China.'
Read more »
To fight climate change, China pledges end to new coal plants overseasChinese leader Xi Jinping says China will not build new coal-fired power projects abroad, using his address at the United Nations General Assembly to add to pledges to deal with climate change.
Read more »
China Evergrande nears interest payment deadlineChina Evergrande Group will make it a top priority to help retail investors redeem their investment products sold by the indebted property giant, its chairman said, as uncertainty looms over interest payment due for a dollar bond on Thursday.
Read more »