Bocom Strategist Hao Hong Weighs in on Deepening HNA Crisis

The video discusses the financial strategies of Chinese companies, focusing on asset sales, overpayment issues, and the movement of money overseas. It compares China's current financial strategies with Japan's in the 1980s, highlighting systemic risk management. The discussion also covers LGFV bonds, potential defaults, and debt management strategies, emphasizing the importance of maintaining credit to avoid increased funding costs.

What is a major challenge companies face when liquidating real estate assets?

• Managing tenant agreements

• Finding buyers quickly

• Locating properties

• Getting a good price

What is one method companies allegedly use to move money overseas?

• Increasing local production

• Investing in local startups

• Reducing domestic workforce

• Overpaying for foreign assets

What was a focus of the Chinese government in 2018?

• Expanding the tech industry

• Increasing foreign investments

• Boosting tourism

• Preventing systemic financial risk

What is a potential risk associated with LGFVs in China?

• Rising unemployment

• Decreasing foreign investments

• Technical defaults

• High inflation rates

What strategy has the Chinese government used to manage LGFV debt?

• Increasing interest rates

• Debt and equity swaps

• Reducing export tariffs

• Expanding infrastructure projects