Suning.com Says Parent, Holder Plan Share Sale

Suning is facing financial difficulties due to a decision to forgo a payment from Evergrande and the impact of the pandemic. The company is exploring various strategies to raise cash, including selling assets and borrowing. The situation is complicated by the interconnectedness of Chinese companies and changing regulatory attitudes towards debt. Investors are finding it challenging to predict which companies might face financial issues next.

What was one of the main reasons for Suning's liquidity crisis?

• A failed merger with another company

• A sudden drop in stock prices

• An increase in production costs

• The founder's decision to forgo a payment from Evergrande

Which of the following is NOT a strategy Suning is using to raise cash?

• Borrowing from a factoring company

• Selling stakes in Inter Milan

• Closing a football team in Jiangsu

• Investing in new retail stores

What challenge do investors face when assessing companies like Suning and Evergrande?

• Finding reliable investment partners

• Accessing international markets

• Understanding complex financial statements

• Predicting which company will face financial trouble next

What policy has the PBOC introduced for property developers?

• The debt ceiling

• The golden rule

• The three red lines

• The silver standard

How has the attitude of Chinese regulators towards corporate debt changed in recent years?

• They have ignored corporate debt issues

• They have become stricter

• They have remained the same

• They have become more lenient