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Regulators Implore Banks: Stop Lending to “Irrational” Overseas Acquirers

July 24, 2017

The deleveraging mandate promised during the recent Financial Work Conference was on full display last week. China’s National Development and Reform Commission urged market participants to halt “irrational” overseas investments while China’s banking regulator played the enforcer, demanding that banks halt lending to the acquisitive Wanda, HNA, Sunac, et. al. Not to be outdone, China’s economic masterminds were also hard at work. The State Council released a blueprint outlining a plan to transform China into the world’s leading Artificial Intelligence powerhouse by 2030. Rounding out the news cycle, Jack Ma led a delegation of Chinese business leaders to meet with the CEOs of JPMorgan, Walmart, GE, GM, etc. ahead of the formal US-China government dialog. The former fared better than the latter, which failed to produce a joint resolution (or even a news conference). More information about the aforementioned can be found in the attached note.

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The views expressed represent an assessment of market conditions at a specific point in time, are opinions only and should not be relied upon as investment advice regarding a particular investment or markets in general. Such information does not constitute a recommendation to buy or sell specific securities or investment vehicles.