How Can Pakistan Become Like China

[Chinese-Dragon]

Pakistan will become a key hub in Asia, linking Asian and ME countires with eachother. If all goes well they can be like another Hong Kong

That would be awesome.

 

[jeypore]

Who are the "Chianese"?

And which "Chianese" bank, collapsed during the Credit Crunch?

I thought we were talking about bail outs ,,,, Especially of the "Chinese banks" compare to the arguement of one time bail out in America. So, do you want some proof!!!!

 

[Chinese-Dragon]

I thought we were talking about bail outs ,,,, Especially of the "Chinese banks" compare to the arguement of one time bail out in America. So, do you want some proof!!!!

You only need a "bail out" if those Banks are on the verge of collapse.

Bailout - Wikipedia, the free encyclopedia

In economics, a bailout is an act of loaning or giving capital to an entity (a company, a country, or an individual) that is in danger of failing, in an attempt to save it from bankruptcy, insolvency, or total liquidation and ruin; or to allow a failing entity to fail gracefully without spreading contagion.

I think you're confusing "stimulus packages" for "bailouts".

If not... then tell me, which Chinese bank was on the verge of failing?

 

[Chinese-Dragon]

Also Jeypore, check the list of "bailouts" here:

Bailout - Wikipedia, the free encyclopedia

There were a LOT of bailouts during 2008 in America. But where is the so-called Chinese bailout that you are claiming?

I think that you are confusing a bailout, with a stimulus package.

 

[Obambam]

You only need a "bail out" if those Banks are on the verge of collapse.

Bailout - Wikipedia, the free encyclopedia



I think you're confusing "stimulus packages" for "bailouts".

If not... then tell me, which Chinese bank was on the verge of failing?

I know one: Lehman Brothers

 

[jeypore]

You only need a "bail out" if those Banks are on the verge of collapse.

Bailout - Wikipedia, the free encyclopedia



I think you're confusing "stimulus packages" for "bailouts".

If not... then tell me, which Chinese bank was on the verge of failing?

Among China's many troubled banks, the Agricultural Bank of China (ABC) has long given Chinese officials the biggest headaches. Established in 1979 to provide financial services to peasants, the Beijing-based bank has accumulated more bad loans—$120 billion at the end of 2007—than any other Chinese state-owned bank. For years, Chinese policymakers have debated proposals to reform the state-owned bank and turn it into a publicly listed commercial bank, but they haven't taken any action.


Beijing Bank Bailout May Help Farmers - China Economic Review - China Economic Review


Lets start with the farmers!!!!!!!!!!!!!

 

[Chinese-Dragon]

Lets start with the farmers!!!!!!!!!!!!!

OK sure, there you have one bailout in 2007. Before the Credit Crunch.

Compare it with this list though, from the above link.

List of bailouts in America during the 2008 Credit Crunch:

# 2008 - The Bear Stearns Companies, Inc.
# 2008 - Fannie Mae and Freddie Mac
# 2008 - The Goldman Sachs Group, Inc. bailed out by the federal government and Berkshire Hathaway
# 2008 - Morgan Stanley bailed out by The Bank of Tokyo-Mitsubishi UFJ
# 2008-2009 - American International Group, Inc. multiple times
# 2008 - Emergency Economic Stabilization Act of 2008[19]
# 2008 - Citigroup Inc.
# 2008 - General Motors Corporation and Chrysler LLC- though not technically a bailout, a bridge loan was given to the auto manufacturers by the U.S. government, this is referred to by most as a bailout
# 2009 - Bank of America to help it absorb known losses that were much greater than revealed to shareholders incurred by its buyout of Merrill Lynch
# 2009 - CIT Group $3 billion by its bondholders in a failed attempt to avoid a bankruptcy. This bailout only delayed the bankruptcy.

http://en.wikipedia.org/wiki/Bailout

 

[Chinese-Dragon]

I thought we were talking about bail outs ,,,, Especially of the "Chinese banks" compare to the arguement of one time bail out in America. So, do you want some proof!!!!

So what you said here Jaypore, is completely wrong, since by looking at the above list, it was MUCH more than a "one-time bailout".

And clearly, America had a lot more bailouts than China had. So you're wrong again.

 

[Omar1984]

Pakistan will become a key hub in Asia, linking Asian and ME countires with eachother. If all goes well they can be like another Hong Kong

Thats the plan.

Let the U.S. leave our region first then all will be well for both Pakistan and China

 

[jeypore]

Here is your current beauty:

China May Face ‘Massive’ Bank Bailouts After Stimulus Program

March 13 (Bloomberg) -- China may be forced to bail out banks that made loans for local-government projects under the unprecedented stimulus program unleashed in 2008, according to Citigroup Inc. and Northwestern University’s Victor Shih.

In a “worst-case scenario,” the non-performing loans of local-government investment vehicles could climb to 2.4 trillion yuan ($350 billion) by 2011, Shen Minggao, Citigroup’s Hong Kong-based chief economist for greater China, said yesterday.

“The most likely case is that the Chinese government will engineer a massive financial bailout of the financial sector,” said Shih, a professor who spent months researching borrowing by about 8,000 local government entities.

Chinese officials pledged this week to limit the risks posed by the investment vehicles, which circumvent restrictions on local-government borrowing to channel money into stimulus projects. Yan Qingmin, head of the banking regulator’s Shanghai branch, said March 5 that China plans to nullify guarantees provided by local governments for some loans.

Citigroup’s Shen said officials may keep monetary policy loose for longer than they should, boosting asset prices and building up overcapacity, to avoid the “squeeze” on investment vehicles that would trigger bad loans and bailouts.

“The risk is that inflation or asset bubbles force the government to withdraw their support to local governments much earlier than expected,” he said in a phone interview.

Stimulus Policies

In Shen’s worst case, commercial banks, lending because of explicit or implicit government guarantees rather than the quality of projects, see 20 percent of lending to the investment vehicles turn bad in 2011.

Premier Wen Jiabao is weighing when to exit crisis policies as property prices surge, inflation climbs and exports rebound, highlighting the risk of overheating in the world’s fastest- growing major economy, awash with cash from unprecedented lending in 2009.

Shih was more pessimistic than Shen in an interview on Bloomberg Television in Hong Kong yesterday. He said that if the central government stops lending to the entities now, the cost of a bailout may already be “in the neighborhood” of 3 trillion yuan.

The academic said that “the only credible action by the central government now is to allow a handful of these entities to go bankrupt -- so that the banks know that the central government means business when it says it’s withdrawing guarantees.”

‘Not So Serious’

In contrast, Jia Kang, the head of the research institute of China’s Ministry of Finance, said March 10 that the risks “may not be so serious as some people have claimed.”

Industrial & Commercial Bank of China Ltd. President Yang Kaisheng said March 7 that the lender had inspected loans it extended to the financing vehicles in 2008 and 2009 and “so far didn’t find many big problems.”

Su Ning, a deputy governor at China’s central bank, said March 8 that a “fairly high proportion” of total lending last year went to the funding vehicles. Chinese banks extended a record 9.59 trillion yuan of new loans in 2009. Su sees “a big risk” from local-government guarantees for money borrowed to fund infrastructure projects that may not generate returns, he said in Beijing.

The investment entities have played a key role in channeling money to stimulus projects, often for urban development, Citigroup’s Shen said.

Zhou’s Concern

Central bank Governor Zhou Xiaochuan said March 6 that while “many” of the financing entities have the ability to repay debt, two types cause concern.

One uses land as collateral, while the other can’t fully repay, meaning local governments may be liable, leading to “fiscal risks,” he told reporters in Beijing.

Regulators believe a few cities and counties may struggle with repayments in coming years because of debt ratios already exceeding 400 percent, a person with knowledge of the matter said in January. The ratio is of year-end outstanding debt to annual disposable fiscal income.

Chinese banks had 497 billion yuan of non-performing loans as of Dec. 31, accounting for 1.58 percent of advances, according to the banking regulator.

--Paul Panckhurst, Kevin Hamlin, Susan Li. Editors: Lily Nonomiya, Cherian Thomas

To contact the reporter on this story: Paul Panckhurst in Beijing at ppanckhurst@bloomberg.net

To contact the editor responsible for this story: Chris Anstey at canstey@bloomberg.net


Do you want further proof..........

 

[Chinese-Dragon]

China May Face Massive Bank Bailouts After Stimulus Program

Can you read? That article above, was from MARCH 2010 so it has been around a year, and nothing has happened.

And it said "China MAY face massive bank bailouts".

So it hasn't actually come true LOL.

 

[Skull and Bones]

OK sure, there you have one bailout in 2007. Before the Credit Crunch.

Compare it with this list though, from the above link.

List of bailouts in America during the 2008 Credit Crunch:



Bailout - Wikipedia, the free encyclopedia

Are we talking about America here?

 

[Chinese-Dragon]

Do you want further proof..........

You quote a one-year old article as proof, even though the prediction didn't actually come true?

What kind of proof is this? And next time give a link to your articles so we can check the date, don't be so unscrupulous.

Here it is.

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aIylss..voRM

 

[Obambam]

Among China's many troubled banks, the Agricultural Bank of China (ABC) has long given Chinese officials the biggest headaches. Established in 1979 to provide financial services to peasants, the Beijing-based bank has accumulated more bad loans—$120 billion at the end of 2007—than any other Chinese state-owned bank. For years, Chinese policymakers have debated proposals to reform the state-owned bank and turn it into a publicly listed commercial bank, but they haven't taken any action.


Beijing Bank Bailout May Help Farmers - China Economic Review - China Economic Review


Lets start with the farmers!!!!!!!!!!!!!

Duno man:

China's Agricultural Bank says 2010 profit $14.6B | The Associated Press | News | Washington Examiner

By: The Associated Press 03/29/11 11:12 PM
The Associated Press
.Agricultural Bank of China Ltd., one of the country's four major state-owned lenders, said Wednesday its 2010 profit jumped 46 percent, driven by an economic rebound and growth of rural business.

Agricultural Bank said profit rose to 94.9 billion yuan ($14.6 billion) in its first year as a publicly traded company following an initial public offering in July in Shanghai and Hong Kong that raised $22.1 billion.

Interest income rose 33.3 percent while fees and other income rose 29.4 percent, the Beijing-based lender reported.

China's banks are benefiting from an economic rebound following the 2008 global crisis and a spike in interest income from higher lending as part of Beijing's stimulus.

The bank said its total assets rose 16 percent to 10.3 trillion yuan ($1.6 trillion) as of the end of 2010.



Read more at the Washington Examiner: China's Agricultural Bank says 2010 profit $14.6B | The Associated Press | News | Washington Examiner

 

[Chinese-Dragon]

Are we talking about America here?

Jeypore was talking about America, have you not read the thread?

If you want to compare China and India instead, that will be easy enough.