2016 outlook: The debt picture

The fourth and final part of FinanceAsia's look at prospects for the year ahead looks at lending matters

2016 outlook: The debt picture

Margin financing has been a lucrative fee earner for investment banks albeit a risky one.

Many company owners and high-net-worth individuals in China have put up blocks of shares in internationally listed companies as collateral against loans from investment banks, much of which they recycle into equity investments.

A head of investment banking at a prominent ECM bookrunner told FinanceAsia that revenues from margin financing were equivalent to a meaningful proportion...

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