before taking on the guarantee, DXF would have make sure their loan is extra extra secure. In the case where the worst happen, like now. if they can’t claim 100% at least they can retrieve 90% which should be sufficient.
these guys have been in the guarantee business for over a decade, iam sure they know the risk they’re taking on, otherwise they would not have survived this long.
also, i’d be worry if these default was caused by a major market recession or some sort of crisis in china. But no, there
is currently no financial crisis in China. these looks like they’re isolate cases.
DXF Price at posting:
5.0¢ Sentiment: Buy Disclosure: Held