100% of all deposits (without maximum) in hkg and china banks are systemically guaranteed since the start of the great financial crisis.
re a hk real estate investor, he buys real estate at 30-50% downpayment, rents out at 3.5-4% yield, suffers a 1.85-2.15% mortgage rate, and does so year after year with excess savings and surplus capital, leasing out on english common law based lease contracts with recourse to everything the renters have, and when markets go down, he buys more, and when markets go up, he adds less
yes, he is levered at 50-70% on any new purchase, and levered at 50% or less on refinancing or any existing holdings; and the bank has recourse to everything he has, on top of any mortgaged property equity.
the interest rate on all mortgage contract is adjustable monthly.
and you think hk bank is in danger?
china mortgage schema is effectively no different than that of hk, with exception of legal regime that favors the banks even more
and neither banking regimes foolishly packages any innovative mortgage-based derivatives product, pilfers bonuses, and then leaves the entire society together with entire babyboomer generation and generations hence to hold the toxic bag.
hawk, banking illiquidity is one easy thing. banking insolvency is entirely something else harsher, as you are and will continue to learn.
so, again, be warned, as i am still trying, after all these years, to save your soul ;0) |
