China trust giant’s missed payments alarm investors
One of China’s largest private wealth managers is triggering fresh anxiety about the health of the country’s shadow banking industry after missing payments on multiple high-yield products.
Three firms said late on Friday that they failed to receive payments on products issued by companies linked to Zhongzhi Enterprise Group, which has about 1 trillion yuan ($213 billion) in assets under management.
Investors are already on edge over concerns about the health of China’s economy and financial markets. One of the nation’s largest developers, Country Garden Holdings, is on the brink of default, while loans extended by Chinese banks fell to the lowest level since 2009 last month.
Chinese stocks slumped, with the CSI 300 Index extending its biggest loss since October, while the yuan weakened.
The missed payments are likely to add to concern over the health of China’s $US2.9 trillion ($4.5 trillion) trust industry, which combines characteristics of commercial and investment banking, private equity and wealth
I have been wondering if or when the Chinese Economy would collapse since 2014, so I believe that President for Life Xi will find a way to paper over, cover up, and otherwise keep the Communist Chinese Government and its economy afloat. They made it through COVID and through the collapse of Evergrande, floods on the Yangtse, and other natural and man made disasters.
If the corrupt Chinese Economy does finally founder, I fully expect Xi to unleash his Maoist ideology on China, and distract everyone with a tidal of bloodshed from the capitalist running dogs, wreckers and other perceived enemies of the Chinese Communist Party. .
And then we would see why so many rich Chinese bought land in Canada, Europe, and the US as they desperately smuggle themselves and their their children overseas out of the reach of the Communist Red Guards.
If the Chinese Economy does collapse, the rest of the world will be following them down the drain. We are all so interconnected that damn near everything in the world is made with one or more parts, fasteners, raw materials, or chemicals from Mainland Communist China.
Our economies will be so disrupted, no one will pay much attention to the Chinese purges and destruction, except complain about what China isn’t shipping them or paying for the few items we send to China.
Here’s (I hope) is an un-paywalled link:
https://www.bloomberg.com/news/articles/2023-08-15/blackrock-allianz-s-country-garden-bond-exposure-draws-focus
What gets me is that, with all of the unmitigated evil that Xi Jinping has wrought onto the world, why are these multi-billion dollar corporations lending money to Chinese companies? Especially huckster, shady companies like Country Gardens. Sheesh.
Why are they loaning money?
Because the executives can make money for themselves.
Are we underestimating how totalitarian regimes can just take over things and change the rules as needed? So these businesses default? To whom is/was the money owed?
Whenever I’m in a retail store I amuse myself by looking for labels that do not say Made in China. It’s darn near impossible. If China sneezes we will all catch cold. (I mean that metaphorically of course)