China's skinny-dipping banks swimming against the tide
Asset managers in the world's second-largest economy are slow to acknowledge investments have gone bad
27 August 2019 - 05:10
You only learn who’s been swimming naked when the tide goes out, as Warren Buffett observed in 2008. This earnings season, we’ll get to see who’s been skinny-dipping in China.
Banks and asset managers in the world’s second-largest economy are notoriously slow to acknowledge investments that have gone bad. But if they have a stock listing in Hong Kong, they’ll be forced to recognize losses earlier in the credit cycle under a change in accounting rules that took effect last year...
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