China's 500 Billion Yuan Bailout - Joe Blogs

In this video I discuss the recent announcement that the Chinese Authorities are injecting 500 Billion Chinese Yuan into the 4 largest banks in order to repair their Tier 1 Capital. Tier 1 Capital is needed by all banks to cover unexpected losses and this capital injection highlights the major problems that Chinese Banks are currently encountering. The Chinese Authorities are funding this cash injection through the issuance of Special Bonds which means that this equity capital is being funded by debt which is going to add further pressure and risk to the Chinese Economy.

Chapters:
0:00 Intro
1:07 TIER 1 CAPITAL
2:18 GDP
4:17 MARGINS
5:14 BAD DEBTS
6:17 TIER 1 RATIO
7:08 BANKS
9:30 SUMMARY & CONCLUSION