Another Chinese bank goes bust

Thursday, 19 December 2019

Via the WSJ:

China’s sovereign-wealth fund is coming to the aid of a troubled lender in a 100 billion yuan ($14.28 billion) bailout, the latest show of government support for the banking sector, which has come under intensifying financial stress as the economy slows.

Hengfeng Bank, based in eastern China’s Shandong Province, will sell 100 billion shares at a valuation of 1 yuan per share, almost all of them to government-backed investors, according the bank and one of its backers.

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.