Property developers, Chinese mainland companies and other investors in US dollars at low levels of interest are now looking at many problems due to the Force level exchange rate The US (FED) survived and the dollar was stronger.
The big debts have been a long-standing chief for Beijing, but foreign foreign loan is loaned and it is possible that financial crisis can be encouraged, Kevin Lai, a leading economist of the Japanese banking bank Daiwa Capital Markets.
China's $ 3 billion trillion can cause the country to be injured by consolidating US dollar leukas, and # 39; weakens the yuan long as China's trade war continues, Lai said. South Westerly
At present, the dollar dollar worldwide has risen to $ 12 billion from $ 9 billion in 2013.
Among them, 25%, equivalent to $ 3,000 billion in debt worth companies in China and branches in Hong Kong, Singapore and its customers. Caribbean. Cross-border financial activities known as China's dollar are growing faster than any other economy that fails to do. emerge, although Beijing's capital profile is narrowly closed.
Hazards cause financial crisis
Two Challenges of Financial Markets – The "taper tantrum" thing in 2013, when the US Army Reserve began to consolidate money policy; and the reform of the Scottish Bank's reform attempt at (PBOC) in August 2015 – even to debt, rather than to # 39; reducing and addressing the basics of governance, business efficiency.
"Can this trade war spend the world's debt to $ 13 trillion or $ 14 trillion," said Lai, saying that the amount of global debts could be affected by the tensioning context of the dollar, which invests to sell inventories to get back dollars and pay their debts.
"We need to talk about a huge debt crisis in debt in the US dollar," said Lai.
The US dollar debt that has risen in foreign locations has entered the financial system and is worried because the exchange rate of the reincarnation may be subject to down pressure. deeper.
Historically, investors, their clients and their clients have benefited from the psychiatric difference between the US and China to borrow loans and to convert the loans into assets copper. RMB with higher profits.
However, in an effort to support economic growth and lending, the PBOC has increased slightly the level of access to prevent the Federal Reserve's decision to raise interest rates.
This movement has restricted the gap between the US and Chinese levels of interest as soon as it can not now be able to; Explain the cost of paying US dollar debt with its more expensive backdrop. ever.
At the recent exchange rate, a dollar equals 6.9439 yuan after renminbi dropped by 11% from March. For many investors, the area is safe between 6.20 yuan and 1 salar. The translation level of 7 yuan is one child, so that any exchange rate under the 7th level can cause a large amount of RMB, which requires more money.
As a result, it will be harder to control the dollar's debt, causing the yuan to be sold and to enter into bad eyes.
"We talk about the massive disaster of the USA. If the yuan is going to go down, you'll see a dollar debt crisis," said Lai.
Increase reflection in the cost of capital boost in dollars, LIBOR (London Bank) rate up to 2.32% this month, the highest in a decade.
And Evergrande, the largest Chinese-largest China-largest development engineer, expects a high 11% energy release for US dollars, and is said to be based. about $ 1.5 billion – analyzed by SCMP.