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Posts tagged as Chinas

Chinese regulators crack down on real estate-backed loans from pawn shops

Over the past few years, China has increasingly relied on real estate-backed loans from pawn stores. Pawn shops in the country provided $43 billion,Pawn shops in the country provided $43 billion worth of loans in 2017 while the number of these stores has doubled since 2010 to more than 8,500, Bloomberg reported.
Crucially, more than half the loans in 2017 were backed by real estate. Borrowers for these loans are not required to disclose how the money will be used, according to Bloomberg, and pawn shops in China will often lend up to 40 percent of the value of an apartment pledged as collateral.More than a third of China’s pawn shops had losses as of February 2018. Now Chinese regulators are seeking to increase oversight of this segment of the market amid a widening crackdown on the countrys expansive shadow banking industry.Specifically, the government is looking to increase the capital requirements for pawn shops.The move also comes as Chinas real estate market is reportedly weakening, especially in rural parts of the country.

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Apple supplier Japan Display forecasts 5th straight year of losses

TOKYO: Japan Display Inc said it expects to post its fifth straight year of net losses, with a late shift to organic light-emitting diode (OLED) screens and slowing iPhone sales costing it orders from Apple Inc, its biggest client.3 billion yen for the October-December quarter.
The quarterly loss compares with the 17 billion yen average profit estimate of three analysts, according to Refinitiv data. For the full year, nine analysts had on average estimated a profit of 8.1 billion yen, the data showed.The losses are making the company desperate for fresh cash, as previous, publicly funded bailouts have failed to help the company reduce its dependence on Apple or to accelerate a shift to OLED panels.The company reiterated on Thursday it is in talks with multiple investors to bolster its finances and is aiming to reach an agreement soon.Kyodo news agency reported that the company is in talks to  receive up to 80 billion yen ($723 million) in a bailout from a group including Taiwanese touch panel maker TPK Holding Co  and Chinese state-owned Silk Road Fund.

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