31.08.2010 - China's rising bank debt could leave nation exposed
From Telegraph: Moody's said China Investment Corporation (CIC), the country's sovereign wealth fund, borrowed $8bn (5.1bn) last week to recapitalise three state-owned banks, using debt rather than genuine equity to boost bank capital. The agency does not explore why the CIC is resorting to debt to carry out these transactions, but the practice looks bizarre from the outside and prompts questions over the resources of the fund itself..............................................Full Article: Source
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