Yet another Chinese bank has stopped paying its bills and is on the brink of collapse:
Wanxiang Trust, an investment and asset management company in China, has reportedly missed payments on several investment products to investors, adding to fresh worries about the stability of the country’s shadow banking sector.
The Hangzhou-based firm has delayed payments on a number of maturing products worth several billion yuan — some of which invested in real estate — state-owned 21st Century Business Herald reported on Tuesday, citing unnamed investors. A trust company usually manages funds for individuals, companies or other entities.
They are playing whack-a-mole with their banking sector exactly like we are and nobody cares. What's more, there's this:Moody’s downgraded its outlook on China’s credit rating to negative from stable on Tuesday, citing risks related to “structurally and persistently lower medium-term economic growth” and ongoing troubles in its property sector.
The lowering of its outlook does not automatically mean the ratings agency will downgrade China’s creditworthiness, but it increases the chances.
Moody’s said the change reflects rising evidence that the authorities will provide financial support to cash-strapped local governments and state-owned enterprises, “posing broad downside risks to China’s fiscal, economic and institutional strength.”
The world's two largest economies have both been downgraded the last year. Nobody has noticed at all.
