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China’s Shadow Banks May Face $40 Billion In Property Losses
"Why doesn’t the company pay us back?" wondered an irritable investor in a trust product sold by Zhongrong International.
Video posted to Chinese social media this week appeared to show small protests at a Zhongrong office, where the aggrieved gathered to commiserate. Their frustrations center around missed payments on high yield investment vehicles peddled by the firm, which is partially controlled by Zhongzhi Enterprise Group, the trillion-yuan conglomerate at the center of a burgeoning sha
$40BN seems well within the Chinese govt’s ability to clean up. Set up the “bad bank”, encourage creditors to “voluntarily” extend/forgive, censor all media coverage, “suggest” that funds buy what needs to be bought. Memory does not serve, but I am pretty sure the Chinese govt has cleaned up similar size messes many times before.