China’s Anbang Insurance went from zero to too-big-to-fail in the
blink of an eye. It is a lesson in how quickly China’s financial
problems grow—and how much is left to clean up.
Beijing said Friday that the state is taking direct control of Anbang Insurance Group, the acquisitive purveyor of unusual investment products whose high-flying chairman Wu Xiaohui was detained last summer amid a broader crackdown on debt.
A capital raising, including a possible government capital injection seems likely. The total cost of cleaning up the mess, including whatever losses sit on Anbang’s gargantuan balance sheet—put at close to 2 trillion yuan ($300 billion) in April by financial magazine Caixin—is an unknown.
Source: Yahoo News
Beijing said Friday that the state is taking direct control of Anbang Insurance Group, the acquisitive purveyor of unusual investment products whose high-flying chairman Wu Xiaohui was detained last summer amid a broader crackdown on debt.
A capital raising, including a possible government capital injection seems likely. The total cost of cleaning up the mess, including whatever losses sit on Anbang’s gargantuan balance sheet—put at close to 2 trillion yuan ($300 billion) in April by financial magazine Caixin—is an unknown.
Source: Yahoo News
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