Love that remark by Sanford C. Bernstein: '“As such, if pawnshop transactions were to be completely eliminated, industry EBITDA could be negatively impacted by 9 to16 per cent. Although we see this as a worst case scenario”. So basically, dubious transactions through UnionPay are being targeted and we should worry? The real worry is that it is still going on in the open and that analysts lament about it as if it was a legit and acceptable factor! As it was put in a SCMP article back in December, we are talking about a "multi-billion-dollar racket", one used to circumvent China's strict currency controls and encourage illegal forms of credit! But this is already old wine in a not so new bottle...
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