Sri Lankan Minister Defends Another Loan from China, Says “China Happens to Have the Cash”
Sri Lanka is seeking a loan of 700 million US dollars (approximately 5.4 billion Hong Kong dollars) from China. As the opposition and dissidents expressed their concerns about the government’s reliance on China, the Minister of Money, Capital Market and Public Enterprise Reform Minister Ajith Nivard Cabraal defended the loan by saying that it was because “it’s China that happens to have the cash now.”
In an interview with The Hindu, Cabraal said, “In different times in world history, different countries have been the ones who have had the most amount of cash. And now it happens to be China, so China will naturally invest all over the world.…I think we should all respect that.”
Despite the International Monetary Fund’s (IMF) estimate that Sri Lanka’s GDP would shrink by 7% this year due to the Wuhan virus pandemic, Cabraal was optimistic about the financial situation in Sri Lanka. He said that the country was seeking different ways to repay its debts, including getting more loans from China, securing a currency swap mechanism with China and India, and issuing samurai and panda bonds.
The Director of the CCP’s Central Foreign Affairs Commission Yang Jiechi is visiting Sri Lanka this month. Following the 500 million US dollars (approximately 3.9 billion Hong Kong dollars) that China gave Sri Lanka just this March to fight the Wuhan virus, the South Asian country is discussing another loan with the Chinese delegation. The country has so far borrowed over 5 billion US dollars (approximately 38.8 billion Hong Kong dollars) from China.
#SriLanka #China #AjithNivardCabraal #YangJiechi #Finance #Diplomacy #WuhanVirus #COVID19 #Pandemic
Source: Apple Daily #Oct20
https://bit.ly/2IZzZkv
Sri Lanka is seeking a loan of 700 million US dollars (approximately 5.4 billion Hong Kong dollars) from China. As the opposition and dissidents expressed their concerns about the government’s reliance on China, the Minister of Money, Capital Market and Public Enterprise Reform Minister Ajith Nivard Cabraal defended the loan by saying that it was because “it’s China that happens to have the cash now.”
In an interview with The Hindu, Cabraal said, “In different times in world history, different countries have been the ones who have had the most amount of cash. And now it happens to be China, so China will naturally invest all over the world.…I think we should all respect that.”
Despite the International Monetary Fund’s (IMF) estimate that Sri Lanka’s GDP would shrink by 7% this year due to the Wuhan virus pandemic, Cabraal was optimistic about the financial situation in Sri Lanka. He said that the country was seeking different ways to repay its debts, including getting more loans from China, securing a currency swap mechanism with China and India, and issuing samurai and panda bonds.
The Director of the CCP’s Central Foreign Affairs Commission Yang Jiechi is visiting Sri Lanka this month. Following the 500 million US dollars (approximately 3.9 billion Hong Kong dollars) that China gave Sri Lanka just this March to fight the Wuhan virus, the South Asian country is discussing another loan with the Chinese delegation. The country has so far borrowed over 5 billion US dollars (approximately 38.8 billion Hong Kong dollars) from China.
#SriLanka #China #AjithNivardCabraal #YangJiechi #Finance #Diplomacy #WuhanVirus #COVID19 #Pandemic
Source: Apple Daily #Oct20
https://bit.ly/2IZzZkv
According to reports, the Australian Ministry of Financial has rejected the Chinese state-owned enterprise China State Construction Company’s acquisition of an Australian construction company in response to national security risks
China state-owned enterprise China State Construction Group planned to acquisition Australian Construction Company Probuild up to 300 million USD, which is 23.4 million HKD. However, Australian Finance Minister Josh Frydenberg and Foreign Investment Review Committee believed that the trade may constitute risks of national security in Australia. This is not in the interests of Australia, the Australian Federal Government will veto the transaction, and China State Construction will eventually cancel the acquisition.
According to ABC, South African parent company of Probuild Wilson Bayly Holmes-Ovcon (WBHO) confirmed to the local media, China State Construction already cancel acquisition. The reason is Frydenberg, and Foreign Investment Review Committee thought that the trade is harmful to national security, so that Australian Government rejected the trade. WBHO also stated, they already communication with potential acquirer in very long time, both had reached consensus, but the transaction fell through.
Australian Financial Department had not response to report and indicated to not commenting on foreign investment review arrangements. Australian Acting Prime Minister McCormack confirmed that China Construction withdraw the acquisition but said it could not disclose the reason for the rejection of foreign investment review.
Source: Stand News #Jan12
https://bit.ly/33sXZU9
#Australia #NationalSecurity #China #Construction #Finance #Risk #Probuild #WBHO
China state-owned enterprise China State Construction Group planned to acquisition Australian Construction Company Probuild up to 300 million USD, which is 23.4 million HKD. However, Australian Finance Minister Josh Frydenberg and Foreign Investment Review Committee believed that the trade may constitute risks of national security in Australia. This is not in the interests of Australia, the Australian Federal Government will veto the transaction, and China State Construction will eventually cancel the acquisition.
According to ABC, South African parent company of Probuild Wilson Bayly Holmes-Ovcon (WBHO) confirmed to the local media, China State Construction already cancel acquisition. The reason is Frydenberg, and Foreign Investment Review Committee thought that the trade is harmful to national security, so that Australian Government rejected the trade. WBHO also stated, they already communication with potential acquirer in very long time, both had reached consensus, but the transaction fell through.
Australian Financial Department had not response to report and indicated to not commenting on foreign investment review arrangements. Australian Acting Prime Minister McCormack confirmed that China Construction withdraw the acquisition but said it could not disclose the reason for the rejection of foreign investment review.
Source: Stand News #Jan12
https://bit.ly/33sXZU9
#Australia #NationalSecurity #China #Construction #Finance #Risk #Probuild #WBHO
立場新聞 Stand News
據報澳洲財政部因應國家安全風險 拒絕中國國企中國建築 收購澳洲建築公司 | 立場報道 | 立場新聞
中國國企中國建築集團，計劃收購澳洲建築公司 Probuild，作價高達 3 億美元，即約 23.4 億港元。但...
#FailedState #1C1S
#CarrieLam is unable to confirm whether Beijing has issued a new mandate to “Regularize” Real Estate in Hong Kong
Hong Kong's #ChiefExecutive Carrie Lam met the media before attending the Executive Council meeting on the morning of September 21, 2021 and was asked about a Reuters report published the previous Friday, Septrmber 17, 2021, regarding Beijing’s pressure on Hong Kong property developers.
At first, she said that “I cannot confirm nor comment on this since they are all rumors.” She followed by saying that Beijing is very concerned about the livelihood of Hong Kong people. After they have “improved” the election system, they hope to enhance the effectiveness of the SAR’s governance. “After improving its effectiveness, of course they would want to help solve problems for the public.”
She added that the housing issue has been substantially adjusted by the current government, and now the remaining issue is the land issue.
“The current issue is a land problem. It is true that the developers have some privately own land, but when it is necessary, public powers can be exercised to recover some of these lands to develop public housing. Thus, solving a problem that has been bothering the city for a long time.”
#Beijing #RealEstateMandate
#Economy #Finance #PropertyMarket #HongKongMarket #CCPRules
Source: Stand News #Sept21
https://bit.ly/3m0SV2n
#CarrieLam is unable to confirm whether Beijing has issued a new mandate to “Regularize” Real Estate in Hong Kong
Hong Kong's #ChiefExecutive Carrie Lam met the media before attending the Executive Council meeting on the morning of September 21, 2021 and was asked about a Reuters report published the previous Friday, Septrmber 17, 2021, regarding Beijing’s pressure on Hong Kong property developers.
At first, she said that “I cannot confirm nor comment on this since they are all rumors.” She followed by saying that Beijing is very concerned about the livelihood of Hong Kong people. After they have “improved” the election system, they hope to enhance the effectiveness of the SAR’s governance. “After improving its effectiveness, of course they would want to help solve problems for the public.”
She added that the housing issue has been substantially adjusted by the current government, and now the remaining issue is the land issue.
“The current issue is a land problem. It is true that the developers have some privately own land, but when it is necessary, public powers can be exercised to recover some of these lands to develop public housing. Thus, solving a problem that has been bothering the city for a long time.”
#Beijing #RealEstateMandate
#Economy #Finance #PropertyMarket #HongKongMarket #CCPRules
Source: Stand News #Sept21
https://bit.ly/3m0SV2n
#Evergrande and other Chinese property giants have sizeable off-balance sheet debt: #JPMorgan
//Investment bank JPMorgan has estimated that troubled Chinese property giant Evergrande and many of its major rivals have billions of dollars worth of off-balance sheet debt that, once added on, ramp up their leverage ratios.
"Instead of true deleveraging, we think Evergrande has shifted some of the interest-bearing debt to off-balance sheet debt," JPMorgan's analysts said. "Commercial papers, wealth management products and perpetual capital securities, etc, which are not officially counted as debt."
They estimated Evergrande's "net gearing," as debt as a ratio of a firm's equity is known, was at least 177% at the end of the first half of the year, instead of the 100% its accounts reported.
"It is possible that the real gearing could be even higher, as data on some off-balance sheet debt is not publicly available," JPMorgan added, saying the "disguised" debt as it called it added up to 55% of Evergrande's overall debt.
Other major firms whose gearing levels were likely to be higher than formally reported included R&F Properties (2777.HK) at 139% versus the 123%, #SunacChina Holdings (1918.HK) at 138% versus 87% reported and #CountryGarden (2007.HK) at 76% versus 50% reported.//
Source: Reuters #Oct7
https://www.reuters.com/business/finance/evergrande-other-chinese-property-giants-have-sizeable-off-balance-sheet-debt-2021-10-07/
#PropertyAnalysis #Economy #Finance #CCPRules #Debt #ChinaMarket #Bubble
//Investment bank JPMorgan has estimated that troubled Chinese property giant Evergrande and many of its major rivals have billions of dollars worth of off-balance sheet debt that, once added on, ramp up their leverage ratios.
"Instead of true deleveraging, we think Evergrande has shifted some of the interest-bearing debt to off-balance sheet debt," JPMorgan's analysts said. "Commercial papers, wealth management products and perpetual capital securities, etc, which are not officially counted as debt."
They estimated Evergrande's "net gearing," as debt as a ratio of a firm's equity is known, was at least 177% at the end of the first half of the year, instead of the 100% its accounts reported.
"It is possible that the real gearing could be even higher, as data on some off-balance sheet debt is not publicly available," JPMorgan added, saying the "disguised" debt as it called it added up to 55% of Evergrande's overall debt.
Other major firms whose gearing levels were likely to be higher than formally reported included R&F Properties (2777.HK) at 139% versus the 123%, #SunacChina Holdings (1918.HK) at 138% versus 87% reported and #CountryGarden (2007.HK) at 76% versus 50% reported.//
Source: Reuters #Oct7
https://www.reuters.com/business/finance/evergrande-other-chinese-property-giants-have-sizeable-off-balance-sheet-debt-2021-10-07/
#PropertyAnalysis #Economy #Finance #CCPRules #Debt #ChinaMarket #Bubble
Reuters
Evergrande and other Chinese property giants have sizeable off-balance sheet debt - JPMorgan
Investment bank JPMorgan has estimated that troubled Chinese property giant Evergrande and many of its major rivals have billions of dollars worth of off-balance sheet debt that, once added on, ramp up their leverage ratios.