'(Bloomberg) -- China’s state-owned property developers are warning of widespread losses, fueling concerns that the housing crisis is expanding from the private sector to companies with government backing.'
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China’s State Developers Warn of Losses as Crisis Spreads, August 18, 2023
'(Bloomberg) -- Only a week ago, Zhongzhi Enterprise Group Co. attracted little notice within China and was almost unheard of everywhere else.
Now, the secretive shadow banking giant has become the latest symbol of financial fragility in an $18 trillion economy where confidence among investors, businesses and consumers is rapidly dwindling.
The privately owned manager of more than 1 trillion yuan ($137 billion) and its trust-company affiliates are under intense scrutiny after halting payments to thousands of customers. Underlining Zhongzhi’s importance, regulators have formed a task force as they seek to prevent contagion. Behind the scenes the firm has hired KPMG to carry out what is likely to be a protracted restructuring process. Potential asset sales threaten to weigh on broader markets.
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In recent years, even as rival trusts pared risks, Zhongzhi and its affiliates, especially Zhongrong, extended financing to troubled developers and snapped up assets from companies including China Evergrande Group.'
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China’s Hidden Financial Dangers Erupt With Shadow Bank Crisis, August 18, 2023
'Chinese banks reporting earnings next week are wrestling with a range of operating challenges as the economy and the property market wobble.
China Construction Bank Corp., Bank of Communications Co. and China Merchants Bank Co. may face heavier provision burdens in the second half of 2023 and early 2024 after developer Country Garden Holdings Co. failed to pay dollar bonds on time. Global investors including BlackRock Inc. and Allianz SE have recent exposure to the bonds as well.
The banks also face scrutiny after embattled shadow bank Zhongrong International Trust Co. missed payments on dozens of products and planned to restructure debt. The liquidity challenges underscore how property sector troubles and the weak economy are gripping the financial sector.'
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Chinese Banks Challenged as Economy Wobbles and Property Market Woes Mount, August 18, 2023
'..burying the data doesn’t fix the problem; it doesn’t even hide it. Rather, it reveals something endemic to autocratic societies: an inability, or unwillingness, to produce genuinely accurate and unbiased statistics.
Tuesday’s decision to suspend reporting the unemployment rate for people ages 16 to 24, which the government attributed to issues over how to treat students looking for work, is part of a pattern: Beijing drops a data series, often quietly, citing poor data quality, then waits until everyone forgets.'
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Is China’s Data Manipulated, or Flawed? Maybe Both, August 18, 2023
Context (An economic Ponzi scheme) – Evergrande Moment – ‘China Evergrande is not ‘too big to fail’, says Global Times editor’China Is Hiding More and More Data From the Rest of the World, August 16, 2023
China Evergrande reports its debt rose to $340 billion in 2022. It plans meetings with creditors, July 18, 2023
China Home Prices Drop at Faster Pace as Downturn Worsens, August 16, 2023
China Can’t Work Out How to Fix Its ‘Balance-Sheet Recession’, June 13, 2023
'.."financial slavery" that grips the world .. are of high human and personal cost..'(Banking Reform - English/Dutch) '..a truly stable financial and monetary system for the twenty-first century..'