China’s HNA Group Looks To Sell US$6.3 Billion Stake In Hilton Worldwide

Financially-troubled Chinese conglomerate HNA Group Co Ltd. is looking to sell "some or all" of its US$6.3 billion stake in Hilton Worldwide Holdings Inc., according to a regulatory filing by Hilton. HNA, whose holdings range from airlines to hotels and financial services, is rapidly shedding assets to regain financial stability following a two-year, US$50 billion acquisition spree.

China Says No More Local Government Guarantees For Corporate Bonds

Chinese companies issuing bonds can no longer seek debt guarantees from local governments, or tell their investors that their bonds are backed by local governments, according to a new measures announced by China’s top State planning body. A notice detailing new rules for corporate bond issuance issued Monday by the National Development and Reform Commission stated: "It is strictly forbidden for reporting enterprises to require or accept the local government and its subordinate departments in various names to provide guarantee …

ANZ: Debunking China’s Debt Conundrum

Despite China’s growing debt level and concerns of a credit bubble burst, the world’s second largest economy has good odds to avoid a painful and unsuccessful de-leveraging process, says a research report by the Australia and New Zealand Banking Group Limited (ANZ). China’s high and still growing debt level is commonly seen as a major threat to its economic and financial stability. By our estimate, the total debt level rose to 236% of GDP by mid-2014, up almost 70 percentage …

China’s Local Government Debt Swap Is A Right Step Forward

China’s decision to launch local government debt swap is the right step in restructuring its massive local debt problem, and should be done on a much larger scale to help manage the country’s rising debt pile, says a research report by UBS AG. China’s Ministry of Finance (MoF) has given local governments permission to issue RMB1 trillion in special local bonds to replace part of the RMB1.86 trillion of debt that is maturing this year.

Are China’s Local Government Financing Platforms A Fortune or Misfortune?

The article’s authors are Yinqiu Lu and Tao Sun, who prepared the paper for the International Monetary Fund China’s Local Government Financing Platforms (LGFPs) are the backbone of local governments in promoting infrastructure development in China. As the principal financing agents for local governments, their crucial role in upgrading China’s infrastructure and promoting economic growth has been widely acknowledged.