DXF is what people call a shadow bank in china. This is how they work.
default loan amounts repaid by the Group on behalf of customers. Upon default by a customer in respect of repayment of financing arrangements, according to the relevant guarantee agreement, the outstanding balance shall be firstly settled by the Group on behalf of customers. The Group will then request repayment from customers or take possession of any assets pledged as collateral for the guarantee to recover the outstanding balance.
Therefore, a huge paper loss at the start of the year. Might be fully recovered by the end of the financial year.
Investors see huge loss, they panic and sell. When its only really storms in a tea cup..
DXF Price at posting:
5.5¢ Sentiment: Buy Disclosure: Held
