The industry insider clarified that the key point to understand is the meaning of a “line of credit” in this context. At this point none of the banks have loaned any money to Evergrande, or even agreed to loan the developer any cash.So it turns out Chinese Banks Did Not Bailout Evergrande.
“What the banks have done, is agreed to consider loaning cash to Evergrande, or to one of its projects, if they come up with a worthwhile proposal that appears creditworthy,” the executive pointed out (after making it clear that they had no direct knowledge of this particular case).
...The bank has no particular reason to sign a partnership agreement or offer a line of credit to Evergrande if there is no actual transaction taking place. However, if a major customer that happens to be one of China’s ten biggest real estate developers asks for a meaningless agreement as a favour, the bank also doesn’t have a lot of reasons to not go along with the public relations maneuver.
S&P 500 Approaches 100-Day Moving Average: Is Now an Attractive Time to Buy
Stocks?
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What a difference a week makes.Last week, the stock market changed its tune
from up, up, up,... to up, down, up, down. That made it feel like investors
wer...
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