too many posts by rbt. Unfortunately, they all deserved to be thrown in the waste basket for its "uneducated wild guess of Chinese banking & business plus the bad writings". It is a torture to read them. Any person with experience running US companies and dealing with Chinese banks in China would not believe a single word of what rbt said.
Well I have proved my point about leading in China
Robert knows nothing
Bank loans are not increasing
None bank loans are up 75%
So how smart where you westonbayer,It was not an uneducated guess was it?
And even local governments are having to go to none banks
And how long ago did I give this to this site?
proof of less lending at banks
ew figures reveal bank loans now accounts for just 52% of the economy’s total fund raising — a record low. In fact, trust loans surged 679% in December alone to 264 billion yuan from a year earlier, according to new bank data last week.
China’s banks are believed to have extended 8.3 trillion yuan in local currency loans last year and its central bank has a target of 8.5 trillion yuan this year, according to reports. But this misses the real funding picture. Bank lending is becoming much less important after an explosion in trust loans and corporate bond issuance in the past year.
Helpfully, China has now coined a new term to measure these emerging funding channels “Total Social Financing” (TSF). This measures total fund raising in the economy, including not just bank lending, but trust loans and bonds, which were up 23% last year.
This means in retrospect, for much of last year, the market was tracking the wrong indicators.
If we rewind to early in 2012, mainland authorities were criticized for not more aggressively loosening policy, despite signs the economy was lumbering further into a slowdown.
One theory was China’s banks were facing supply constraints as deposit growth slowed and bank loans to provincial governments were rolled over, rather than repaid.
Many analysts argued a slowdown in bank lending was unavoidable after earlier lending sprees.
And while bank lending started strong in 2012, it continued to decline.
After April saw bank lending peak at 1 trillion yuan, monthly lending continued to fall, ending the year at roughly half that in November and December.
I have listed one lph
on forbes 200 list of best small cap in the world
Their accounting was a huge fraud and promoted by red chip in the fraud
What was red chip answer
Used their accounting and we no longer trust any chines accounting
There is how many none national gas companies in China?
lets see you list a couple that have gotten low interest loans in the last year
Hears your chance to prove me wrong ,and none can include management putting up their own assets.
Did you go look on the internet and look at Chinese banking
You would soon see the problems they are having
What Us companies are lending to companies like chng?
What US companies are lending to small companies in China?
I personally have talked to an accountant who holds classes for Chinese auditors
What Us companies are dealing with Chinese banks
You say you know so much ,prove it
You are saying China is not having trouble with accounting in China
Where have you been
To understand China
It was the wild west
Locals just did ever thing they could
build a steel plant even if it was not profitable
ever local area had one ,too much real state investment etc.
Well that lead to inflation
So would you cut off funds to your national companies or locals?
Well thats where we are
To me its just simple to me and do not take enough time to explain
I will try again
1st There are national and local banks
Nationals banks deal with national companies
They can go to their fed and get unlimited cheap money
A large national oil and gas company like ceo can get unlimited money at 5%
These companies are buying oil fields etc on the world market
China wants more oil and gas
Well support these companies
Well if you want these companies to succeed you would like them to also due oil and gas inside the country.So you would also lend them money at 5%
China does not always believe in capitalism
It has too many oil and gas companies
Let the nationals take over chng for pennies.makes these companies stronger
That makes these companies stronger to compete against exon
5 years ago it wanted chng to do good,it had locals government and banks lend money to chng at 5%
Well the local banks and governments are not doing well
They have no money to lend and they can not go to the fed
they and chng can only go to investors for money
China does not have a history of lending like this
No accounting in China is trusted by any one
Most small businesses in China are formed by borrowing from families
Sgas is an example
Management put up their houses for loans
They have borrowed all possible,and now they have to go to the market
And so rates are a lot higher
I assume but do not now about chng management net worth is
If you can not borrow at a cheap rate than investments are not profitable ,period
So its to be seen what the national government will do about 100s of local companies that can not get cheap money
Will they just support nationals and most locals will not do well but the nationals will do great
That is in the interest of China to make nationals stronger
Who knows what they are going to do.
The central government and their relatives
Thats how government officials get rich
We have a new government
Which relative will have the information
What policies will they do
They have huge plans
Will it be locals or only nationals that do the work
In the past if you has billions you could get this information from relatives.They ran mutual funds and you invested in those
Is this better
If you new who was going to get cheap loans on projects that chng has plans for could you not buy these stocks
Well who is going to get cheap loans for these?
Chng needs 500 million dollars for these plans
And management does not have the money to buy the company much less this 500 million dollars
And we hate the ex president who had connection to the government
How smart is this?
When investing you have to look at the whole picture