Article: Why China ‘Bad Bank’ Huarong’s Fall Is Big Bad News: QuickTake

Article - Media, Publications

Why China ‘Bad Bank’ Huarong’s Fall Is Big Bad News: QuickTake

Rebecca Choong Wilkins, 18April 2021

What happens when a company set up by the Chinese government to help clean up toxic debt in the country’s banking system gets into trouble itself? We’re finding out now. Investors were spooked in April after China Huarong Asset Management Co., one of the country’s biggest distressed asset managers, failed to release financial statements in the wake of the execution of its former top executive for bribery. That raised questions about its financial health — and broader worries about whether China would let an institution backed by the central government fail. The ending of a presumed safety net that’s long been priced into Chinese bond values would mean a seismic shift for investors across emerging markets. Continue reading “Article: Why China ‘Bad Bank’ Huarong’s Fall Is Big Bad News: QuickTake”

Article: Germany bans naked short-selling, swaps speculation

Article - Media, Publications

Germany bans naked short-selling, swaps speculation

China Daily, 19 May 2010

Germany prohibited naked short-selling and speculating on European government bonds with credit-default swaps in an effort to calm the region’s financial markets, sparking investor anxiety about increasing regulation.

The ban, which took effect at the midnight of May 18 and lasts until March 31, 2011, also applies to the shares of 10 banks and insurers, German financial regulator BaFin said in an e-mailed statement. The step was needed because of “exceptional volatility” in euro-area bonds, BaFin said. Continue reading “Article: Germany bans naked short-selling, swaps speculation”