An article from Bloomberg, just in case you were planning on relaxing this weekend
- Credit Suisse Group AG, analyzing figures from Chinese data provider Wind Information says that the threat of financial contagion posed by a repayment bulge this year for China’s trust funds has been delayed rather than dealt with.
- Nomura also predicts the maturity peak, at about 1 trillion yuan, is now more likely to come in 2015 than this quarter.
“They haven’t deactivated the time bomb,” said Dong Tao, a Hong Kong-based economist at Credit Suisse. “When the trust funds can’t make interest payments and it looks like no one is going to roll them over, they ask local governments to take over their assets. Local government financing vehicles don’t have money, so they ask the banks.”
More at the link: China Trust ‘Timebomb’ Ticks as Credit Suisse Sees Rejig
