Monday August 23, 2021
The vision mission statements of TAMUSA COB suggest you are being prepared for a global economy, well here goes.
(Bloomberg) -- China Huarong Asset Management Co.’s credit rating was cut by Moody’s Investors Service to Baa2 from Baa1, and the borrower remains on watch for a potential further downgrade.Click for full article in finance.yahoo here.
The WSJ articlle today, page B 10, tells us that all the bad loans from Chinese banks are off loaded to Harong.
If Huarong lost its investment-grade credit rating, 56% of surveyed fund managers that hold its dollar bonds would be forced to sell, according to a Bank of America report dated Aug. 17.
Questions for students
what constitutes an investment grade credit rating ?
Why did fund managers have to sell on the downgrade, at 70 cents on the dolar?
the rest of the world has had serious doubts about Chinese accounting for decades. Here we see loans are not written off but merely transferred to Harong. Gee didn't Enron do pretty much the same thing with its SPE debt, off loading it from the Enron balance sheet to a third party?
Gosh Xi is not likely to let Huarong go bust, but that does not mean it has a strong balance sheet.
