Hikvision's Hometown Debt Crisis Rising

JH
John Honovich
May 30, 2016
IPVM

Most industry people know about Hikvision's $3 billion debt financing from last year but many are likely not aware of how massive debt expansion is going on throughout China.

A new FT investigation on Hikvision's home province, Zhejiang, shines light on this:

The local [Zhejiang] government leans on local banks to keep the credit flowing in, companies are taking on ever-larger amounts of debt to service a growing loan burden, while the bankers reckon the real level of bad loans is as high as 30 per cent of total lending.

Eventually, this will end badly for everyone, including Hikvision. How bad and how soon are the key questions.

JH
John Honovich
May 31, 2016
IPVM

Related, Hikvision China issued a press release touting Zhejiang's Provincial Party Secretary (roughly equivalent to the Governor) toured Hikvision last week.

Hikvision, as state owned and one of the largest companies in Zhejiang is quite an important force in their economy. That's certainly good news for Hikvision, as within this ever mounting debt bubble, the government has great incentive to stand behind Hikvision.

UI
Undisclosed Integrator #1
Jun 02, 2016

The sooner the better. Let that bubble break so maybe we can get some American made products for once.

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