03-20-2014, 11:20 PM
In a case which offers a microcosm of the cracks emerging in China’s shadow banking system, Zhejiang Xingrun Real Estate, the provincial developer, had been offering usurious rates of interest to individuals after being shut out by conventional banks... Here’s J-Cap’s Anne Stevenson-Yang acting as the voice of many:
In solar and coal, analysts would be hard-pressed to find a single profitable company for nearly two years before defaults began to be threatened. Property is moving into the same situation as the solar and coal industries, despite the glorious company reports. High sales numbers obscure the fact that a large but unknown proportion of what are reported as sales actually represents loan transactions, as Chinese institutions take tranches of housing units as collateral for debt. Maturities in property trusts came and went in 2013 Q4, but the next, much higher peak is in the second quarter of 2015, with about RMB 80 bln coming due in that quarter.