China debt institutionalizing as bank default fears loom
Oct. 21 – China’s Ministry of Finance has instigated a trial program that will allow four select local governments to issue bonds directly. To date, this route to raising funds has been banned, however rising debt levels and bank loans about to fall due have made the issue a pressing one for Beijing. Concern over local governments defaulting on debt has prompted the trial. China’s National Audit Office has stated that 25 percent of China’s RMB10.7 trillion (US$1.67 trillion) will fall due by this year end, with about 17 percent due next year and 11 percent in 2013. Continue reading
Posted in East China, Economy and Politics, Finance, Tax and Accounting, South China
Tagged China Debt, China Default, China Local Governments, Guangdong, Shanghai, Shenzhen, Zhejiang
Oct. 19 – China’s CNR Corporation, a state-owned enterprise that manufactures trains, is having to issue RMB2 billion in one-year bonds in order to finance debt it is owed from the Ministry of Rail, according to the South China Morning Post.
CNR, who are listed in Shanghai, had a negative second quarter in 2011, resulting in an operating loss of RMB8.58 billion against a positive inflow of RMB905 million in the same period last year. The company has firmly left the situation at the door of the Ministry of Rail. Continue reading
Posted in Aviation, Economy and Politics, FDI and Foreign Trade, Shipping & Logistics
Tagged Air China, Boeing, China Aviation, China Debt, China Ministry of Rail, China Southern, CNR Corporation, Dreamliners, Hainan Airlines, Xiamen Airlines
Getting tough with China debt recovery and civil litigation issues
Sept. 30 – One of the lesser known, but highly effective and valuable tools that can be deployed when faced with dealing with bad debt or related civil issues against errant individuals in China is the issuance of stop orders.
These require a petition to a judge (a locally qualified lawyer is best to handle this) who can then, on determining evidence set before them, issue an order to customs and immigration to prevent the named individual from leaving the country. Continue reading