Hedge Fund Banxia Dumps China Banks on Bad Loan Warning

Banxia cuts China bank exposure as bad loan fears mount

Shanghai-based macro hedge fund Banxia Investment Management, led by prominent manager Li Bei, is exiting its China bank positions as the nation’s deepening property crisis threatens to cascade into the financial system via rising bad loans, according to a report by Bloomberg. The report cites Baxi as warning in a letter to investors dated 11 May, that risks in China’s mortgage and business loan portfolios are “rising rapidly”, driven by a susta…

Hedge fund Banxia dumps China banks on bad loan warning

From Bloomberg: An influential Chinese macro hedge fund is dumping stocks of the nation's banks on expectations a build up in bad loans will escalate as the property crisis shows no sign of abating. Led by founder Li Bei, Shanghai Banxia Investment Management Center said in an April letter to inves... Article link