China Mulls New Holding Company for Huarong, Bad-Debt Managers

The video discusses China's Ministry of Finance considering a proposal to transfer stakes in major asset managers to a holding company, aiming to separate government roles as regulator and shareholder. This move may attract external investors and treat asset managers more like commercial entities. The discussion highlights the scrutiny on financial risks and the potential for broader reforms. It also covers upcoming bond payments and market reactions, noting a divergence in performance between short and long-term bonds.

What are the expected outcomes for Huarong's bond payments in the coming months?

What does the divergence between longer dated and shorter dated bonds indicate about investor confidence in Huarong?