China's "toxic" debt $ 3 billion


The incredible contribution comes from Kevin Lai, a leading economist for Asia (except Japan) at his & her; Daiwa Capital Markets bank and investment company.

According to Lai, $ 3 billion debt China is particularly dangerous due to the depression of US dollar leukard, the weakening of the yuan and the ongoing trade war of China.

US global debt outside the United States today has risen to $ 12 trillion (up from $ 9 trillion in 2013). These included the debts of Chinese mainland companies and their contractors in Hong Kong, Singapore and the Caribbean. accounting for 25%, or $ 3 trillion.

China's cross border activity is growing faster than any other market economy that is going to grow. emerge, although Beijing has closed part of its financial account.

$ 3 billion billion toxic gas debts - Picture 1

China's attractive activity has grown faster than any other emerging economy. Photograph: Clachan

In order to address two financial market challenges – "rage" in 2013 when the Periodic Reserve (FED) began to consolidate funding policy and an attempt from People and Bank of China (PBOC) to reform On exchange rates in August 2015, Jane has increased US debt, rather than paying debt and her; solve basic issues of corporate governance and effectiveness.

"Can the world's debts trade warrant cost $ 13 billion or $ 14 billion?" He stressed that global debt debt levels could become high due to tight financial policy in the US. This is likely to be done by browsers Sale of property for USD and pay backSouth-West "We will talk about the main financial crisis – debt debts in the US," said the expert.

Mr Lai said the rise in US dance debt in foreign countries has become involved in the world's second largest economy banking system and is worried with its downward capability. In addition to the exchange rate of RMB.

Historically, migrants, investors and customers have taken advantage of the gap between the US and Chinese levels of interest to buy voluntary loans and buy assets to benefit available. However, in an effort to support the economy and economic growth, the PBOC has increased the level of interest in response to the movement of the Fide to raise interest rates. This makes the gap between Energy levels of the US and Chinese He expanded rapidly to his / her point that he was no longer a & # 39; The cost of paying foreign currency loans to the world's 1-year economy, which was more expensive than ever.

According to the latest figures, the dollar sold at 6,9439 yuan, after Scotland's money dropped by 11 per cent from March. For many investors, they have the "comfortable zones" at around 6.20 and 7.00 yuan for 1 USD. Therefore, the current level of 7.00 yuan can be encouraged deer sales, Strengthening its value to keep it up; decline, according to Lai's analysis.

As a result, dollar loans are even more difficult to handle, and continue to sell more yuan and sales; Perhaps a difficult circle when there is no solution to $ 3 billion debt debt in China.

"We talk about a big picture. If the yuan is growing, we can see one Distribution of USD"said Lai.

Do Quyen (According to SCMP)

Source link