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11-08-2016, 11:15 AM
(This post was last modified: 11-08-2016, 11:16 AM by CY09.
Edit Reason: edits
)
Behappy posted quite a few good articles about China in another post which is reflective of China's plight imo. I am in the camp that China is indeed in a very bad debt bubble and am curious to see how much haircuts banks/financial lenders will have to take.
Basically, a lot of corporate debts in China are as good as gone due to overcapacity in steel/coal/shipbuilding/unsold properties and many companies are unable to repay the principal. Some province govt have resorted to forcing the lenders to take haircuts. With YZJ having so much financial assets, it is important for us to relook into its type of investments. For YZJ, impairment of financial assets is a definite scenario.
Basically, a lot of corporate debts in China are as good as gone due to overcapacity in steel/coal/shipbuilding/unsold properties and many companies are unable to repay the principal. Some province govt have resorted to forcing the lenders to take haircuts. With YZJ having so much financial assets, it is important for us to relook into its type of investments. For YZJ, impairment of financial assets is a definite scenario.