Let's be more explicit.
In June 2019, Evergrande plowed 13.2B¥ into Shengjing Bank, acquiring 36% stake in a literal lender.
Shengjing was on the brink of default. Tier 1 capital adequacy ratio was 8.52%, barely above regulatory req.
Now why would a propco bail out a bank? 🤔
I have just changed the ToC for #QOTO.. We replaced the phrase "free speech" With the more appropriate principle of "Academic Freedom". We also changed some subtle wording to be more explicit.
In practice our rules have not changed in any meaningful way. I may make some more tweaks soon.
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