Wealthy Chinese investors are turning to “sunshine” private trusts, the prototypes of hedge funds in the communist nation, as the property market cools, stocks slump and bank-deposit rates fail to match inflation.
China’s private trust-fund assets tripled to 138.3 billion yuan ($22 billion) in the 18 months to Sept. 30, according to the most recent data from the China Trustee Association, while global hedge-fund assets have stalled at around $2 [...]
And to think it was less than two months ago that Warren Buffett took a bath to provide the bank with capital it had “absolutely no need for” but was happy to take it anyway. Well, it turns out the firm is preparing to raise just a “little” more capital. From the just released 10Q: “During the third quarter, global economic uncertainty and volatility continued as described more fully in [...]
Pretty amazing when you see something intelligent out of China – that we, and the rest of the so-called “Western World”, refuse to do:
The assets linked to wealth management products provided by trust companies must be shifted onto banksâ€™ balance sheets by the end of 2011, the people said, declining to be identified as the matter isnâ€™t public. Lenders should prepare provisions equal to 150 percent [...]