Chinese companies concern about dollar shortage and sell overseas assets


Large Chinese companies with high levels of debt and foreign investment have recently been selling off their assets in connection with China’s struggle with risky loans and overseas transactions. According to the South China Morning Post, the last such major deal with Chinese assets was the sale of the Waldorf Astoria hotel in New York by the Anbang Insurance Group. The current situation speaks of fears of a lack of dollars in the country to pay for growing debt, since the authorities, considering the ongoing trade war with the United States, do not want to repay the debt from foreign exchange reserves, which, according to the latest data, are at the level of 3.1 trillion dollars. At the end of last year, China’s foreign debt amounted to 1.97 trillion dollars. Its growth of 12% was mainly due to an increase in the volume of borrowing of Chinese companies in US dollars.

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