China’s CBIRC Says Huarong Has Ample Liquidity

China’s CBIRC Says Huarong Has Ample Liquidity

Assessment

Interactive Video

Business, Social Studies

University

Hard

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The video discusses the recent intervention by financial regulators to address concerns about liquidity and operations of a company, which helped ease investor worries. Despite this, there remains uncertainty as regulators have yet to approve an overhaul plan, and the company is still on a negative credit watch. Investors are concerned about the extent of state support for SMEs and the vulnerabilities in Chinese dollar bonds. The focus is on the need for clarity on the overhaul plan and the refinancing risks associated with upcoming bond maturities.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What was the primary role of the financial regulators' statements regarding Hwoarang?

To announce new financial policies

To fill the information vacuum and ease investor concerns

To declare bankruptcy

To increase interest rates

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a potential consequence mentioned in the second section regarding Hwoarang's credit rating?

A temporary suspension of the credit rating

A downgrade by all major rating companies

No change in the credit rating

An upgrade by all major rating companies

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What broader issue are investors concerned about, as mentioned in the second section?

The introduction of new technology in finance

The rise in global oil prices

The scope and extent of state support for SMEs

The impact of new tax laws

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What do investors want to know about the overhaul plan, as discussed in the final section?

The new interest rates

The timeline for its approval

The names of the new board members

The exact amount of liquidity available

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What financial risk is Hwoarang facing with its bonds, as mentioned in the final section?

Interest rate risk

Currency exchange risk

Refinancing risk

Inflation risk