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Underground Finance

Further trust slowdown ratchets up the pressure

Trust issuance has continued to slow as the value of maturing trusts are rising dramatically, increasing potential default risks. To date, however, policymakers remain reluctant to countenance infrastructure trust defaults, with defaults most likely to occur within the energy and mining sectors.

28 August 2014

Recovery proves short-lived

Sluggish July data and initial indications from our proprietary surveys in August appear to have borne out our prediction that the apparent uptick in Chinese economic growth seen in June would prove short-lived.

28 August 2014

Bond markets rebound despite rising default risks

Stricter shadow finance regulations, a series of targeted easing measures by the central bank and market participants’ increasing acceptance of bonds as risk-based investment assets have contributed to a sharp rebound in bond issuance in recent months.

31 July 2014

China’s monetary policy shift

Recent targeted moves to boost base money supply suggest that China’s central bank is set on managing liquidity through direct measures aimed at specific sectors of the economy, rather than previously used market-wide injection tools such as rate cuts or RRR hikes

03 July 2014

Shadow finance slowdown intensifies

Our latest analysis of official and industry data highlights the slowdown in shadow financing seen since the middle of 2013, a trend that is raising default risks across a number of key sectors of the economy.

19 June 2014

Focus Media heading to Hong Kong?

DANWEI - Although we would question its out-of-home advertising business model in the age of smart phones, Focus Media may soon list in Hong Kong. Also this week: 100.com is trying to challenge New Oriental in online education, and more. In the Mai-Mai Index we look at the battle between China’s two leading taxi-hailing apps on social media.

04 April 2014

Tarena IPO: Questions from the Chinese Internet

DANWEI - The Chinese education services company Tarena is set for a Nasdaq IPO. This week we consider online complaints about the company that suggest important lines of enquiry for potential investors. Also this week, new players are set to threaten the big three Chinese telecom operators, and in the Mai-Mai Index we look at Chinese sportswear brands on Weibo.

31 March 2014

Tracking China’s low-entry Internet investment products

DANWEI - In this edition of the Danwei Bulletin we launch a new section that will track China’s low-entry Internet investment products. We also look at Tencent’s WeChat: some Chinese media commentary suggests its popularity has peaked. Lastly this week: dodgy dealings in online dating and real estate classifieds.

21 March 2014

Virtual credit cards and online drug sales

DANWEI - In the Danwei Bulletin this week we look at why Alibaba’s acquired ChinaVision; its involvement with CITIC for “virtual credit cards”; and a mysterious website that has been given permission to sell drugs online and may also belong to Alibaba. In the Mai-Mai Index, we dissect a massive peak in discussions of financial products on Weibo in February.

14 March 2014

2014 to see huge growth in alternative financing

DANWEI - The CEO of China’s P2P lending service is very bullish on the industry’s prospects for 2014, and considers 2013 as the “year one” of P2P financing. Also this week, Toyota recalls vehicles in China, a Chinese gold miner seeks to buy a Texan energy company, and more. In the Mai-Mai Index, we look at smartphone brands on Chinese social media.

21 February 2014
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