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News Link • China

"Magic" Collateral: A Frank Look At The Sheer Credit Horror About To Be Unleashed In China

• http://www.zerohedge.com, by Tyler Durden

 
The default may or may not happen, as there is always a high likelihood it will simply be bailed out as has happened frequently in the past, but regardless of the final outcome, here is what is really going on behind the scenes. From Bank of America:
31 Mar 2014, Rmb196mn borrowed by Magic Property & arranged by CITIC Trust
 
Details: invested in an office building in Chongqing. The Chongqing developer ran into financial problems in mid-2013. CITIC Trust tried to auction the collateral but failed to do so because the developer has sold the collateral and also mortgaged it to a few other lenders.

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