See the New York Times Story Here
So last week, I wrote a post about another massive Chinese conglomerate having major issues with debt, HNA group. Well, HNA group wasn't the only massive conglomerate having issues - Anbang was also having some major issues as well, even earlier than HNA - see post here.
Some would argue that this is political, and it probably is at least a little bit. With that said, their main issue was massive debt, which many Chinese companies have taken on a crippling amount of.
Just speculating here, but this seems to me like a pre-emptive action by the Chinese government to try to hold this back from affecting the markets in China in a larger way. Will this work? Who knows, I would say it's probably just kicking the can down the road in that instance, but hard to say. It will be interesting to see if they start selling off assets similar to what HNA is doing right now. Others are speculating this could be the first domino to topple in a potential financial crisis in China.
I'm curious to see how this affects Chinese markets. As of 12:45 eastern time, the markets don't seem to be reacting to this too much, so perhaps they see it as a good sign that the gov't is trying to reign in risks.
Edit: it seems Anbang most recently had over 300 billion $ of assets, not 120.
Submitted February 22, 2018 at 11:57PM by cbus20122 http://ift.tt/2HDNEIU
