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http://www.reuters.com/article/us-china-...SKCN0WK071
While the headline news is wonderful, depper delving into the article reveals a few trends
1) Uneven price increases: "The NBS data showed 32 of 70 major cities tracked by the NBS saw year-on-year price gains, up from 25 in January. Tier 1 cities, including Shenzhen, Shanghai and Beijing, remained the top performers, with prices surging 12.9 percent, 20.6 percent and 56.9 percent, respectively." - It seems most of its other major cities are experiencing pretty bad home prices
2) And in another related news, read somewhere that unsold units in China has risen by about 14% and it will take China a long time to clear this inventory
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(18-03-2016, 10:34 AM)CY09 Wrote: http://www.reuters.com/article/us-china-...SKCN0WK071
While the headline news is wonderful, depper delving into the article reveals a few trends
1) Uneven price increases: "The NBS data showed 32 of 70 major cities tracked by the NBS saw year-on-year price gains, up from 25 in January. Tier 1 cities, including Shenzhen, Shanghai and Beijing, remained the top performers, with prices surging 12.9 percent, 20.6 percent and 56.9 percent, respectively." - It seems most of its other major cities are experiencing pretty bad home prices
2) And in another related news, read somewhere that unsold units in China has risen by about 14% and it will take China a long time to clear this inventory
yes they have like estimated 5 years of inventory. to note their inventory are also crap units many which lack fittings and are technically BRAND NEW but not liveable.
The uneven price increase just goes to show that those speculators in Tier 2,3,4 cities and developers have like been adequateluy "BURNT" in the past years bust and poor fundamentals like local debt / economic slowdown / job losses have kicked in and the fever is gone.
So only the survivors left in the big cities who still have money left, continue to speculate as fresh credit flows in from the banks. I suspect many of those speculators in the big cities are the smart money who exit the stock market before it crashed last year and now redeploy their excess cash to "GORENG" the big city property again as more credit and liquidity appears from the rate decreases. .
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The M&A deals from Chinese companies buying up foreign companies are coming fast and furious. According to the FT, the total value of the deals for the first 3 months of 2016 is almost equal to the total value of the deals in the full year of 2015.
Some folks speculated that it could be a weakening RMB play but I doubt it as the acquisitions do not appear to be funded by RMB loans.
Anyone has a good feel on why this is the case?
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This time around, no state-owned asset management companies to do the job. PEs are lining up, after the new possibility to debt owners. Asset type similar to CB, is THE most preferred asset for PEs...
As China opens bad debt market, private equity firms step in
21 Mar 2016 07:17
[HONG KONG] Foreign distressed debt managers are building a presence in China, undeterred by an opaque legal system but equally encouraged by government steps to open up to specialised players and reduce a mountain of corporate bad debt.
New measures that include a pilot programme to securitise bad loans may only act to dent an estimated 4 trillion yuan (S$842 billion) of distressed debt, but big foreign firms believe the economy's slowing growth is pressuring Beijing to allow alternative ways to reduce debt.
KKR & Co LP and Oaktree Capital Group LP, as well as niche players such as Clearwater Capital Partners and Shoreline Capital Management, have all staked out plans in China's distressed debt market.
...
REUTERS
Source: Business Times Breaking News
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Bloomberg - China Has a $590 Billion Problem With Unpaid Bills http://www.bloomberg.com/news/articles/2...-go-unpaid
Nearing AFC levels. End game coming.
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(21-03-2016, 10:18 AM)BlueKelah Wrote: Bloomberg - China Has a $590 Billion Problem With Unpaid Bills http://www.bloomberg.com/news/articles/2...-go-unpaid
Nearing AFC levels. End game coming.
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I suggest to put all china related economic news under one thread, for ease of reference later.
Thank you
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Moderator
“夏则资皮，冬则资纱，旱则资船，水则资车” - 范蠡
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(21-03-2016, 10:54 AM)CityFarmer Wrote: (21-03-2016, 10:18 AM)BlueKelah Wrote: Bloomberg - China Has a $590 Billion Problem With Unpaid Bills http://www.bloomberg.com/news/articles/2...-go-unpaid
Nearing AFC levels. End game coming.
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I suggest to put all china related economic news under one thread, for ease of reference later.
Thank you
Regards
Moderator
would if I could. Unfortunately when click share on the bloomberg article on mobile phone under tapatalk, there is no option to choose to post under current thread.
It always post as a new thread under the Economic news category..
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(21-03-2016, 02:09 PM)BlueKelah Wrote: (21-03-2016, 10:54 AM)CityFarmer Wrote: (21-03-2016, 10:18 AM)BlueKelah Wrote: Bloomberg - China Has a $590 Billion Problem With Unpaid Bills http://www.bloomberg.com/news/articles/2...-go-unpaid
Nearing AFC levels. End game coming.
Sent from my MotoG3 using Tapatalk
I suggest to put all china related economic news under one thread, for ease of reference later.
Thank you
Regards
Moderator
would if I could. Unfortunately when click share on the bloomberg article on mobile phone under tapatalk, there is no option to choose to post under current thread.
It always post as a new thread under the Economic news category..
I see. Noted.
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21-03-2016, 05:46 PM
(This post was last modified: 21-03-2016, 06:28 PM by BlueKelah.)
Nvm, i will use comp. to post articles next time. Tapatalk system sux sometimes, needs to improve.
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(19-03-2016, 01:52 PM)HitandRun Wrote: The M&A deals from Chinese companies buying up foreign companies are coming fast and furious. According to the FT, the total value of the deals for the first 3 months of 2016 is almost equal to the total value of the deals in the full year of 2015.
Some folks speculated that it could be a weakening RMB play but I doubt it as the acquisitions do not appear to be funded by RMB loans.
Anyone has a good feel on why this is the case?
One of the important drivers, is the support from state-owned banks...
Bank of China loans over US$50b for Chinese firms' overseas M&A
SHANGHAI (March 22): State-owned Bank of China said it has extended US$56.3 billion ($76.4 billion) worth of loans to fund 188 overseas acquisition deals by Chinese companies in the past six years, highlighting how local firms are seeking inroads into overseas markets as growth slows at home.
The deals funded by Bank of China, one of the country's Big Four state banks, included those in industries ranging from electronics, infrastructure, commerce and leasing, it said in a statement posted on its website on Monday.
The bank also signed loan contracts worth US$9.7 billion during the 2009-2015 period to aid Chinese exporters, and US$82.6 billion worth of lending to finance Chinese companies' overseas operations.
Chinese companies, backed by state lenders, have been aggressively snapping up assets overseas. The purchases are partly being driven by slowing growth at home.
...
http://www.theedgemarkets.com/sg/article...verseas-ma
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