What The ?

State owned Agricultural Bank of China plans to raise up to $23.2 billion via a stock offering in Shanghai and Hong Kong. There are a number of red flags here for investors:
  • Why, with the Chinese market down 22% this year, are they shoving this massive IPO down investors throats? It seems very desperate on the part of the bank.
  • Western banks that are not state owned and are not forced to give out loans based on political connections can't make good loans. How will a Chinese bank with all these additional political pressures make good loans?
  • Jim Chanos says there is a property bubble in China. I don't like betting against Jim Chanos.

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