Money Matters | Here’s a HK$100 bet that HNA will win its third bid for Kai Tak land, for another record price
To understand why, one must know the prime aim of many Chinese corporate actions these days -- get the money out of the mainland
Money Matters will bet HK$100 on Chinese conglomerate HNA Holding Group putting down another jaw-dropping sum of money to win its third bid for the residential site in Kai Tak.
Not that I have a crystal ball or know any insider in the conglomerate. It’s simply a logical deduction from the high leverage asset game mainland Chinese corporates have been playing these days.
To understand it, one must know the prime aim of most corporate actions nowadays – get the money out of China.
That’s for security’s sake. It’s not only a protection against the depreciating yuan but more importantly against the graft crackdown that shows no sign of abating. Not a fen is real unless it’s out of the country.
It is, however, becoming increasingly difficult.
Beijing has been tightening its control on capital outflows since last spring. Corporates have to prove the authenticity of their overseas investments to get approval to move money.
