We want to share with you our views on, from where we sit in Hong Kong, China, this momentous election outcome of Trump’s victory. We see Trump’s victory as a further catalyst for private lending markets, particularly in China.
Hong Kong has announced a new measure to curb the residential rally, 15% Stamp duty on all Second Home Purchase. We anticipate transaction volume will drop by c.30-40% when compared with the previous home price rising period (April 2016 to October 2016) at 5,456 deals per month. We believe the new policy has the effects of reducing the number of speculators and deferring some first-time buyers from buying in anticipating a cheaper entry point in the correction.
With global markets taking a nose dive in recent weeks, many have argued that it has been caused by a slowdown in the Chinese economy.
Barry Lau, Managing Partner and CIO of Private Investments, shares his on the ground in China perspectives.
Adamas provides onshore loans in China via entrusted loans which means we can obtain onshore asset pledge as part of our security package. However, entrusted loans may not be the most easily understood concept by foreign investors as it is rare for oversea lenders to enter into such contracts. In this white paper, we will have a detailed discussion on how entrusted loans are structured, and what the relevant enforcement procedures in relation to defaulted loans in China.
The debate over the importance of and the risks posed by China’s shadow banking system to the economy seems a never-ending one and the recent sudden cash crunch in China brought “shadow banking” under the spotlight again. As an insider of the credit markets for SMEs in China, we feel it is important to share our insights about this issue and help our investors and friends obtain a comprehensive view about this market.