Reuters Reported Earlier China Tells Banks To Roll Over Local Government Debts
Portfolio Pulse from Charles Gross
China has instructed its banks to roll over local government debts, as reported by Reuters. This move is aimed at managing financial risks in a faltering economy.
October 17, 2023 | 9:07 am
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The news of China instructing banks to roll over local government debts could impact the iShares China Large-Cap ETF (FXI), which tracks large Chinese companies, including banks.
The decision to roll over local government debts could indicate financial instability in China's economy. This could negatively impact the performance of large Chinese companies, including banks, which are tracked by the FXI ETF. Therefore, the ETF's value could potentially decrease in the short term.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80