Xie Yu

Xie Yu

Chief China Finance Reporter, Business

Yu is a contributor to Inkstone. She is Chief China Finance Reporter with the South China Morning Post.

Location
Hong Kong
Language spoken
English, Mandarin
Areas of Expertise
China finance, economy
China’s first bank takeover since 1998 flags hidden credit risk
The Chinese authorities on Friday took over Baoshang Bank, a private bank based in the northern region of Inner Mongolia, citing its “severe credit risks.” It was the first government takeover of a bank in China since 1998, and it highlights the credit risks hidden in China’s smaller banks. “The move shows that the problem with Baoshang is so serious that it could not be solved by the local authorities,” said Sun Wujun, a finance professor at Nanjing University. “Baoshang is just one case that reflects the credit risks hidden among China’s small and medium-size banks in their wild expansion over the past few years,” he said. Rural commercial banks, licensed to serve villages and smaller tow
Mysterious Chinese lender reveals list of scandal-hit clients
A Chinese state-owned company in the midst of a sweeping corruption crackdown has unveiled a list of its clients, revealing that it has been lending to a number of well-known conglomerates that are being investigated or scrutinized by the authorities. Huarong Asset Management is the biggest of China’s managers of bad loans. At least, that’s what it was established in 1999 to do. But in recent years, it has grown to become a big lender in its own right. Last week, China’s anti-graft watchdog put Huarong’s chairman Lai Xiaomin, 55, under investigation for suspected corruption. No other details were provided. Brock Silvers, managing director of Kaiyuan Capital in Shanghai, told Inkstone that H
Beijing finds it’s not so easy to shrink a missing tycoon’s empire
A plan by Chinese authorities to split up a business empire controlled by a mysterious missing billionaire has run into difficulty. The Tomorrow Group, the flagship corporate vehicle of tycoon Xiao Jianhua, is struggling to sell off its holdings because it is unable to agree on the value of key assets with potential buyers, according to public corporate filings and sources who are close to those deals. Beijing has ordered Xiao to divest about $23.9 billion worth of assets this year to repay bank loans, the South China Morning Post reported last month. The company had already divested about $16 billion (100 billion yuan) the previous year. Sources say the sales are meant to break up a large,
A Chinese tycoon is (unusually) contesting fraud charges
An embattled Chinese tycoon has stood up to Beijing by contesting all charges brought against him by the government. Wu Xiaohui, the ex-chairman of financial conglomerate Anbang Insurance Group, was put on trial in Shanghai on Wednesday, a Chinese court said in an online announcement. A former car insurance salesman, Wu made Anbang one of China’s most aggressive overseas dealmakers after he founded the company in 2004. The group, which has over $300 billion in assets, has pursued high-profile takeovers including the $1.95 billion purchase of New York’s Waldorf Astoria hotel in 2014. Wu also held talks with Jared Kushner in 2016 over a property project in New York City. However, the once hig