VitalAccurateThinking

China Bank Raises $19B in IPO

Why people are willing to investing in any bank in China is beyond my comprehension. However, this bank had no problem attracting $19 billion. What I see is a banking system that would face collapse if money was free to flow across national boundaries. They have very high non-performing loan rates, most of which are not disclosed. The only things keeping the banks afloat are the high savings rates and the huge trade imbalance. Without those factors, the banks would come tumbling down.

posted by Jim VAT @ 6:52 PM