UPCOMING WRITE OFF OF CHINESE BONDS – WHY YEAR END QUARTER GIVES MORE CLEAR PICTURE THAN ANY OTHER QUARTER OF CALENDER YEAR 

Recently we came across news about various institutions writing off Investments in Evergrande Bonds and booking Billion-dollar losses. Similarly, BFAM booking annual loss of $4 Billion on Chinese Real Estate Credit bets. So all in all many entities are in line to Book losses like Ashmore, HSBC, UBS etc. Now let us emphasize why yearContinue reading “UPCOMING WRITE OFF OF CHINESE BONDS – WHY YEAR END QUARTER GIVES MORE CLEAR PICTURE THAN ANY OTHER QUARTER OF CALENDER YEAR “

Ali Baba and its 920 Entities-Financial Comedy in Modern Day Value Investment-Part 1

We all know that lots of quality funds and investors are holding Alibaba in spite of the fact that the share prices have crashed by more than 65% from its $320 in 27.10.2020 to $111.96 (As on 03.12.2021). Being one of the largest owner entity (More than 920 Entities operating in one umbrella), Books ofContinue reading “Ali Baba and its 920 Entities-Financial Comedy in Modern Day Value Investment-Part 1”

Updates on Chinese Real Estate Developers Debt

While the new Corona variant is posing a threat to the global financial system with panic fall in global market along with fall in commodity prices. But to the contrary, fall in commodity prices should be considered as ease in inflation but the market took the same in opposite direction with blood bath. So canContinue reading “Updates on Chinese Real Estate Developers Debt”

Mocan -Chinese E-Commerce giant Bankruptcy

The Chinese E-commerce giant suddenly declared Bankruptcy in Shenzhen leaving many supplier to flock to the MoCan branch in Shenzhen to demand their dues from the company. However, when they arrived at the office of the company, they discovered that the space was empty. The dues were pending since long time. About MoCan MoCan isContinue reading “Mocan -Chinese E-Commerce giant Bankruptcy”

Country Garden (Time Bomb bigger than Evergrande)

Day in and day out we are preoccupied with Evergrande Debt saga. Some people claim that the size is biggest in China. But today we will emphasise on Country garden which seems to be far far bigger in size than Evergrande. Just in terms of number of projects Evergrande has 817 projects but Country GardenContinue reading “Country Garden (Time Bomb bigger than Evergrande)”

Local Government Financing Vehicle (LGFV) – How it helped fuel the Chinese housing bubble

In our previous blogs, we have written in detail about China’s real estate mess where we have described that how the crackdown on real estate sector can trigger contagion effect in the economy, its impact and then we further emphasised on Collateral Loan Obligation implosion. But somehow all those blogs are not complete if weContinue reading “Local Government Financing Vehicle (LGFV) – How it helped fuel the Chinese housing bubble”

Vodafone Idea-Update on Bond yields(Junk Bond) and Liabilities

Before going into depth of Vodafone Idea Debt, let us look at the Bond yields of Vodafone Idea. Out of 7500 crore, Rs 6000 crore is required to be paid by company before 14th February 2022 (Can be claimed as Valentine Stock). The details of Bonds are as under: Vodafone Bond Yeilds ISIN No MaturityContinue reading “Vodafone Idea-Update on Bond yields(Junk Bond) and Liabilities”

SREI-More than 35000 crores exposure for Banks

While Banking Index is making new high but people and Banks are missing some great exposure of SREI group. Lets look at the exposure on combined basis, individual Company basis and detailed individual basis: Combined Exposure of SREI Group S.No Name of Bank Amount in Crores 1 UCO BANK                    12,578.00 2 Axis Bank LimitedContinue reading “SREI-More than 35000 crores exposure for Banks”

Role of Yuan in Influencing value of Dollar

Overview As on date much has been talked about Evergrande and its contagion effects but how does contagion effect get triggered is the key point. While the whole media claims that “What happens in China remains in China” but the situation as on day is telling us different Scenario. Before going into depth of ContagionContinue reading “Role of Yuan in Influencing value of Dollar”

Reverse Repo Data

For last two months we have seen huge spike in Reverse Repo Market where in the size of reverse repo is touching trillion dollars and more daily. The charts attached below gives a eagle eye view of what is happening with this liquidity: The excess liquidity which Central Banks have created is now being parkedContinue reading “Reverse Repo Data”

Collateral Loan Obligation in China-Is it similar to Lehman?

CLO-Overview It is a form of securitization where payments from multiple middle sized and large business loans are pooled together and passed on to different classes of owners in various tranches. In short investors will have first claim on cash flows from the underlying loans. Eg: Suppose a Bank has advanced Loan to following persons:Continue reading “Collateral Loan Obligation in China-Is it similar to Lehman?”

Update on China Debt

SAFE Releases China’s External Debt Data at the end of March 2021 Annexed table:China’s Gross  External Debt Position by Sector,End of March 2021 End of March 2021 End of March 2021 (Unit:100  million RMB) (Unit:100 million US dollars) General Government 26596 4047    Short-term 957 146      Currency and deposits 0 0      Debt  securitiesContinue reading “Update on China Debt”