HSBC Group is expected in the next few months to sell its 8.0% stake in the Bank of Shanghai. The financial services giant could receive as much as $800 million from its shares in the second-tier Chinese lender. Why do analysts think HSBC will unload its holding soon? It looks like the Bank of Shanghai is set to raise $2 billion by selling newly issued stock, on the Shanghai and Hong Kong exchanges, with a value of up to 30% of its existing shares. The listing could occur before June, so HSBC will have to act now if it does not want to be trapped by a lock-up period, typically imposed on e
Goldman Sachs has historically been one of the more bullish investment houses on Wall Street, but the firm has recently taken a dark macro view. The Wall Street Journal reported on Sept.
As most know by now, over the past month or so, pressure on the currencies of EM deficit countries has intensified again. Goldman's EM research group, however, remains negative on EM FX, bonds, and even stocks suggesting using any strength, like this week's exuberance to add protection or cover any remaining longs. Central banks in most of these countries have become more active in attempting to stem pressure in the last two weeks.
The Chinese model of economic growth is flawed. It has wasted resources on an unprecedented scale. Empty cities, excess industrial capacity and sour construction loans litter the country. New lending yields less and less incremental growth. And the very worst construction projects aren’t producing enough cash to service debts.
The Chinese economy, like most others, rests on a shaky foundation of credit. The country has completed the largest building boom in history — a boom that depended on unsustainable growth in the supply of money and credit.
The huge 8.8 magnitude earthquake that hit Chile this weekend could have short-term affects on stocks' potential winners and losers.CopperWith Chile being the world’s number one producer of copper, the industrial metal surged over 5% on Monday, as supply disruptions sent the price higher. The iPath Dow Jones Copper ETN (JJC) tracks the price of copper and the PowerShares Base Metals ETF (DBB) is composed of one-third copper along with aluminum and zinc.
A Chinese project to make a copy of Manhattan, complete with Rockefeller and Lincoln centers is not going well. The replica city is about an hour from Beijing and may need a bailout.
Elsewhere, real estate prices have fallen like a rock in Shanghai, and China's banks may be understating their exposure to local borrowing gone haywire.
Local Debts Dwarf Official Data