Posted on 05/29/2019 3:29:41 AM PDT by BeauBo
"One of the more unusual aspects of the Baoshang drama is that it's been reported not only that, but high-level authorities have publicly expressed concern that there may be bank runs and financial institutions that 'disappear,'" J Capital Research, a China-focused investment firm, wrote in a note to clients... the balance sheets of Chinese banks are not to be trusted.
(Excerpt) Read more at businessinsider.com ...
US News reported: “Chinese regulators have issued instructions for the repayment of debts owed by China’s beleaguered Baoshang Bank that could see larger debts facing haircuts of as much as 30%, two sources with knowledge of the matter told Reuters.”
I have a Chinese American friend working for a top U.S. tech company, in a finance area of the company, and he makes a number of trips to China every year. He has always told me, as an American finance person with experience in China, that you can trust the financial statements of Chinese companies, whether “private” or government enterprises. They have been so use to “making things look good” for the higher ups for so long, that everyone continues to doctor the books and financial statements.
I have another Chinese-American friend (just very recently got her American citizenship) who works in arranging capital investments. She did it here in the U.S., and moved back to China for a while to do the same in China. She gave it up and came back to the U.S.; so many deals went bad because so many people lied; then she pissed off some party flak who did not like her failure to promote deals she did not believe in.
NOBODY in China makes it really big on their own. Behind them somewhere, is a silent partner, a major stockholder/stockholders, board member(s), or “investors” who are some big mucky mucks in government or the party (there is only one party in China).
I think you meant that you CANT trust the financial statements.
You are right. The only prize I can give you are my thanks.
Yes - my hands are slower and dumber than my brain and make mistakes my brain does not notice because it has already moved on in the text. I DO need to slow down and edit sometimes.
No stones thrown here!!!
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