Sechel

China dealing with its own AIG mess

Dajia Insurance, known as Anbang before it was taken over by the Chinese government, has stepped up its sale of assets.

It is the latest effort by Beijing to dissolve the group following its credit-fuelled expansion, including the purchase of Waldorf Astoria in New York, that put the country’s financial system under stress and led to the arrest of its founder on fraud charges.

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Curious-Cat
Curious-Cat

It is hidden risks such as this that make me wonder how Goldman Sachs can declare that the economy is nearly Recession Proof. Of course, if I was in their business I would probably say the same thing.

Latkes
Latkes

Paywall

Sechel
Sechel

During a two-year acquisition binge through 2016 that included New York’s iconic Waldorf Astoria Hotel, Anbang became synonymous with China’s unbridled appetite for international trophy assets. That ended when authorities took over the group after former Chairman Wu Xiaohui was sentenced to 18 years in prison for fundraising fraud. They then began selling some of the assets it had accumulated.

Lesson learned. When foreigners want to over-pay for U.S. assets we should let them. Reminds me of Rockferfeller center properites acquisition by Mitsubishi Esatate which the media complained about but ultimately was a proven foolish and paying way too much as well


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