As from April 2013 my Journey in Investing is to create Retirement Income for Life till 85 years old in 2041 for two persons over market cycles of Bull and Bear.

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Friday, 6 November 2020

if you take a 1 billion yuan loan, you are not scared at all, the bank is

 In that speech, apart from labeling the global banking Basel Accords as an “old people’s club,” Ma said “systemic risk” is not the issue in China. Rather, China’s biggest risk is that it “lacks a financial ecosystem.” Chinese banks are like “pawn shops”, where collateral and guarantees are the hard currencies. As a result, some decided to go so big they are not allowed to fail. “As the Chinese like to say, if you borrow 100,000 yuan from the bank, you are a bit scared; if you borrow a million yuan, both you and the bank are a little nervous; but if you take a 1 billion yuan loan, you are not scared at all, the bank is,” Ma said. 

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CW8888

When Ant goes globally and has 1 billion borrowers who can't pay back. Now who will be scared har???




7 comments:

  1. Hi Uncle8888,

    That line about banks being scared was likely uttered by Paul Getty back in the 1920s or 30s ... if u borrow $100 from the bank, it's your problem. If you borrow $100M, it's the bank's problem.

    It was used again during the height of the GFC in late 2008. Of course by then, the $100M has been replaced by $100B lol.

    Jack overestimated the goodwill Beijing had for him & his companies when he started criticising last month. Afterall, the govt had all along closed an eye to the systemically crucial shadow banking system for the past 20 years.

    When Jack took the risk to dabble in unregulated financing more than 10 yrs ago, he reportedly said, "If anyone has to go to jail, I will go." Doubt it will reach that stage though. Lol!

    He just has to eat humble pie & suck it up to Beijing for a while. In the meantime Ant will continue collecting lots of revenue from mainlanders lol.

    When it comes to foreign markets though, I doubt if Ant will be so freewheeling as in China. In China, the data collection, AI real time data analysis, and the everywhere nature of e-commerce & e-finance allows Ant to have on-the-fly knowledge of any mainlander's credit worthiness and how risky he is.

    Overseas, Ant will fall back on more traditional & conservative underwriting and credit checks. Unless foreign govts are willing to be as wired AND as lax about data privacy as Beijing! :)

    The current price weakness in Alibaba is an opportunity for those willing to hold for a few years. ;)

    ReplyDelete
  2. Those who go into China market i think have to weary of :-
    But the Chinese believe, "Fat Water don't Flow Into Outsider's Farm".

    Just sold some of my US stocks after > than 30 to 35 years.

    But i Do think of opening bank & brokerage Acct. in "Perfumed Harbour" for many years already.
    Not afraid of Chinese saying quoted above?
    Used to put everything on "DRIP"
    Aka think it was too troublesome to trade US stocks in the past.
    Where got internet then?

    ReplyDelete
  3. "Used to put everything on "DRIP"
    Aka think it was too troublesome to trade US stocks in the past.
    Where got internet then"?

    Above should be continued after
    Just sold some of my US stocks after > than 30 to 35 years.

    ReplyDelete
  4. Almost opened an acct. in HK when RMB to $HK to $Sing was 5 $Sing.

    Especially when Gold was hot in HK because Singapore got GST on Gold 100% whereas HK no lah.

    So HK or Singapore was smarter then?

    Same goes for Estate Duty.
    Singapore have to abolish ED due to many countries.

    Also to attract "Multi Millionaires and Billionaires" to have residents in Singapore.

    The most famous one Jim Rogers and .....

    ReplyDelete
  5. So "Con Ka Liu", Love makes the World goes round or Money?

    Me? - Should be got Money makes Love goes Round the World goes?

    Why Jim Rogers residence in Singapore?

    ReplyDelete
  6. https://www.youtube.com/watch?v=IAdv7wGJKwE
    Do U agree with this about why Beijing blocked Ant IPO?

    Like i have said above, if IPO was in US stock exchange (if US allows), Maybe Beijing will close one eye.

    What about the guy who borrowed up to $600,000 to apply for this IPO?

    i wish i have the cloud/ financial power to allow me to borrow such amount of money for IPO.

    On the other hand, will i be so foolhardy with OPM?

    IPO stand for = "It's Probably Overpriced"

    So some investors are not interested in IPOs.

    Because out of 10 IPOs , how many will make U money on first day of trading?

    1, 2, or 3? Who really sure about the future?

    Is it Tikam, Tikam for people who are interested in IPOs?

    Or there is an art or science to apply for IPOs?


    LOL.

    ReplyDelete
  7. i like IPOs only if they can make me money on first day of trading.

    But who can be sure of that?

    ReplyDelete

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