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Tightened mortgage lending has pushed Hongkongers into arms of cash-rich developers and their expensive property loans

Mortgage loans for new homes provided by banks inched up 1.5 per cent in 2018, but the proportion of loans offered by non-banking financial companies, mainly developers’ finance companies, jumped to 21.7 per cent of the total, up from 14.6 per cent in 2017. Photo: Felix Wong Source link

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US$369.6 million in defaults at apparently cash-rich firms expose flaws in mainland Chinese auditing practices

Three mainland Chinese companies have missed a combined 2.5 billion yuan (US$369.6 million) in debt repayments over the past two months despite apparently high cash holdings, a development that has exposed deep flaws in the auditing and financial disclosure practices in the country. Kangde Xin Composite Material Group, a Shenzhen-listed new material producer, failed to pay a 1 billion yuan local note due on January 15 because of a liquidity crunch, according to the company. Yet, as of September end, it had 15.4 billion yuan in cash and equivalents, more…

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