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China bad debt problem [Copy link] 中文

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Post time 2006-6-19 09:38:13 |Display all floors
What effect will this have on China's future?

"China bad loans may reach total of $900bn
By Richard McGregor in Beijing

Published: May 3 2006 07:46 | Last updated: May 3 2006 07:46

China?s total liabilities for non-performing loans may be as high as $900bn, dwarfing official
estimates and outstripping the country?s massive foreign exchange reserves, according to a
study of Beijing?s bad debt problem."

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Post time 2006-6-19 11:23:05 |Display all floors

Reply #1 iluv2fish's post

How about the USa Debts????

Mountainfuls!!!!
What's on your mind now........ooooooooooooooo la la....Kind Regards

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Post time 2006-6-19 12:13:33 |Display all floors

Reply #1 iluv2fish's post

Last heard, the doubtful debt is US$450 billion...

why the inflated figure, Mr. Fish?

and its in Rmb!
Chinese government has power to solve the problem...
It is not foreign loans....right?

and we have learn in 1997 crisis on how to solve the problem.
with a series of Asset management companies.
and higher bank deposit/loan interest margins to absorb the bad debt.
and Central bank equity injections to the top 4 banks which accounts for a large portion of the banking assets.


Green Dragon

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Post time 2006-6-20 11:24:54 |Display all floors

Reply #3 greendragon's post

Oh! Once China Rmb appreciates, it would need to do fiscal discipline on the borrowers! ie. the companies that borrow to invest in "capacity buildup" must sell at a profit.......than the non performing loan can be recovered.

But it would mean MORE EXPENSIVE products in the USA. ie. price of goods could double in the USA while it would increase by a lesser degree in the NEW MIDDLE KINGDOM, BRITISH CLUB and the EU as our mutual currencies will appreciate.

Green Dragon

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Post time 2006-6-20 13:10:35 |Display all floors

bad loan is not a problem

they can sell almost anything on this land, which belongs to "the people". That is to say, if debt adds up to a dangerous point... sell the country to foreigners.

get ready, guys, you can pick up a real bargain.

What happened in Russia may happen at any time in China. Just look at how the local government act like the head of a company.

They think they are GOD.

In a sense, they really are.

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Post time 2006-6-20 14:11:11 |Display all floors
Fishing over troubles water backhome in the USA???

You know the Cuba missles diversion trick???

Originally posted by greendragon at 2006-6-19 12:13
Last heard, the doubtful debt is US$450 billion...

why the inflated figure, Mr. Fish?

and its in Rmb!
Chinese government has power to solve the problem...
It is not foreign loans....right?
...
What's on your mind now........ooooooooooooooo la la....Kind Regards

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Post time 2006-6-20 19:24:13 |Display all floors

Chinese debt

Fish's $900 billion figure actually comes from a report Ernst and Young gave on China's non-performing loans, which identified a total figure of $911 billion. They had actually been asked to do the report by Beijing, but then the report was binned because the government didn't like to hear what they had to say.

[ Last edited by mencius at 2006-6-20 12:26 PM ]
"People are the water, the ruler is the boat; water can carry the boat, but it can also capsize it."

-- Li Shimin (2nd Tang Emperor, "Taizong")

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