[김유성의 금융CAST]The real reason why the Chinese government hates Ma Yun

[이데일리 김유성 기자] Ma Yun, an object of envy and a mythical being, became a timid person. Was the Chinese government condemning Ma Yun because it was a real communist party that was tightly closed. If I hate China, would a person who had a strong momentum like Ma Yun become like cabbage in salt?

Ma Yun, founder of Alibaba[AFPBB 제공]

Taking the news so far, it seems clear that Alibaba’s founder Ma Yun has touched the Chinese government’s planting. In preparation for the listing of Ant Group in October of last year, Ma Yun criticized Chinese financial authorities’ regulations. It was his unstoppable sound.

The problem is the Chinese government. Looking at the end, the Chinese government is the ones who are famous in the world. If they didn’t like them, they used all sorts of tricks, so everyone thought it was.

Around this time, Ma-window also came out. Even the disappearance rumor came out. The disappearance of the people who were captured while leading the Hong Kong democracy movement and those who made anti-government remarks related to Corona 19 looked around, so it seemed that Ma would not be safe.

Fortunately, Ma-win resumed official activities and the disappearance rumors went into place. Returned to the form of a gentle entrepreneur. His Antgroup fell into the hands of Chinese authorities and was directly regulated. From the outside, it seems that the Communist Party government is also trying to sleep with companies.

The real reason Ma Yun touched the Chinese government’s planting

Was the Chinese government really doing that because of Ma Yun’s words? That doesn’t seem to be all. The Chinese government has no choice but to regulate Ma Yun’s Ant Group. This is because of the chronic shadow finance and related debt problems.

Source: Image Today

China has grown rapidly since 1990 and has increased its market size. Over the course of decades of boom, debt grew. Amid rapid growth, the supply of money was not sufficient, and the Chinese government managed to keep bank money out of waste. Those in a hurry of money, those who couldn’t easily find a bank, had no choice but to find a non-bank or private finance. It is so-called shadow finance.

The problem with shadow finance is that it is difficult to grasp the scale and insolvency at the government level. Preventive management is also not easy. If insolvency occurs, it is difficult to predict how far the impact will go. Western economists have also steadily raised the issue.

However, the emergence of fintech companies such as Alipay is being evaluated as making this shadow finance even bigger. These companies provided conditions for loans to those who were marginalized by the 1-2 financial sector. You can easily receive small loans on mobile without going to the bank, and interest based on credit ratings was calculated from user data. Even if there is no bank transaction record, if the communication fee has been faithfully paid, a loan is made.

According to the Wall Street Journal on the 6th of last month, the amount of loans executed through Alipay amounted to $230 billion. This is about 260 trillion won in our money. Most of this money was from small and medium-sized city commercial banks and capital companies. Alipay served as an intermediary to calculate the interest rates of those seeking loans while recruiting them.

A Wall Street Journal article pointing out that Antgroup’s lending could fix flaws in the Chinese banking system

Alipay seems to have liquidated some loans. It lowered the risk by bundling the loan assets of low and middle creditors. For example, even if C-class bonds go bankrupt, it is okay if many B or A-class bonds are normally repaid.

(If you have a small amount of money, it is the human psychology that you want to get at least interest. It can be assumed that the financial authorities play the role of monitoring in the realization of this psychology.)

The liquidated lump served as collateral for obtaining additional loans. What are you talking about, borrowing money again as collateral. This is understandable when you consider that bonds can be an asset, like a house document. Let’s say you went to a neighbor’s house to borrow money with the borrowing card or memorandum that you wrote’I will pay you back’. You can earn additional interest income.

However, this image is reminiscent of the’subprime mortgage crisis’ in the US in the 2000s. ‘Sub’ means below and’Prime’ means excellent, but at the time, US banks overdominated mortgage loans to non-excellent (subprime) users. Since I felt strongly that the price of the house would go up, I gave a loan to people who couldn’t pay back to buy a house.

These banks increased their profits by receiving interest on the backbone even from non-performing users. Hopefully it would have been a stop here, these banks turned their money into huge chunks.

It turned it into an asset such as a house document, and took an additional loan and lent it to other inexperienced users. They traded these lumps among themselves and made new financial products based on them.

As the U.S. housing economy fell and house prices fell, non-superior lenders who were unable to pay off their loans were in a hurry to “batch”. The banks that had been partying with the assets of the main body quickly became insolvent.

The context of concern for the Chinese government may be here. From the perspective of the Chinese government, which is already troubled by local governments and public corporations’ debts, it was compelling to hate the lending of its citizens, especially those of middle and low-ranking creditors. You may have seen Alipay at the center of it. It is believed that these fintech companies have created a structure that allows them to easily lend to mid- to low-end creditors.

Mid-to-low credit loan dilemma that Korea is also unrelated to

Recently, loans to low- and middle-tier creditors in Korea are also on the rise. As interest rates are lowering, credit card companies’ credit products and capital companies’ loans are also rushing out. With the addition of fintech companies’ credit rating technology, the size of loans that can be received by mid- to low-end creditors has increased.

In particular, young young people with insufficient banking records or promising businessmen can borrow money without having to open a hand at the bank. This is because the number of comments, likes, and sales growth in shopping malls are calculated in the interest rate calculation.

The problem is when loans are excessively increased. And when these loans are twisted between each other, unexpected economic shocks and the like occur. Mid-to-low credit users are inevitably vulnerable to economic fluctuations. The subprime mortgage crisis was also the first to be shocked by the housing market downturn.

Korean fintech, which is following China’s back in fintech finance, cannot be free from this dilemma. As an alternative credit rating compared to traditional credit ratings, it is possible for mid- to low-end creditors to get a lot of loans cheaply.

If alternative credit ratings are activated as a my data project promoted by the government authorities, the scale can increase.

Although lending is said to be a virtue in an era of low interest rates, it may be the sayings of those who sell loans. True Banks that sell loans call their loans’risk weighted assets’. There is an indication that it can be swarmed at any time. Maybe the data economy has “gruesome results”.