Don’t confuse this will a bail-out in the West
After being plagued with a cash shortfall of more than $2 billion earlier this quarter, China’s HNA is still standing. It has been bolstered by $4.6 billion in recent asset sales, plus a lot of help from Chinese banks, according to the Financial Times.
Political Backdrop: President Xi Jinping is reasserting the government’s control over the economy. As he prioritizes reining in its overheated financial sector, HNA was a great place to start.
Loosened its grip: The Government bailed out HNA after they reinstated a former anti-corruption czar as vice-president. Many mistakenly assume that firms like HNA are relatively similar to private companies in the West.
Worth noting the obvious: All businesses in China are ultimately subordinate to the Chinese Communist Party and ‘President for Life’ Xi Jinping. (FT)