For some time shadow banking emerged in China as a potentially dangerous tumor on its financial system, but seemed to have faded away when the real estate crisis hit the country. Financial analyst Sara Hsu has a thorough look at the current state of the industry in the Diplomat. Is shadow banking dead?Read More →
China is carrying a huge load of debts, and the only way out is to allow failing companies to go bankrupt, says financial analyst Victor Shih to Bloomberg. That fix should be part of the upcoming new 5-year plan, he says.Read More →
Financial reforms seem to get on its way, as China removed last week the deposit interest rate ceiling. Financial analyst Sara Hsu calls it in the Diplomat a milestone in the promised financial changes.Read More →
The government has really messed up almost anything they did on the financial markets, says financial analyst Arthur Kroeber on NPR. Internal divisions between different factions did not help to make sound financial decisions.Read More →
Debts are high on the agenda of the central and local governments, as local resources to pay debts of get capital for investments diminish, tells associate-professor Victor Shih in Bloomberg. The efforts of the central government to relieve local governments from debts might not help everybody.Read More →
The China Investment Corporation (CIC) obtained 100 billion US$ bond issue from the Ministry of Finance to finance the One Road, One Belt initiative, writes financial analyst Sara Hsu in The Diplomat. Although CIC has been initially less successful, Hsu expects China´s largest sovereign wealth fund will be able to make a huge profit.Read More →
About US$142 billion in capital left China in April and June, triggering off some concerns. But according to financial analyst Sara Hsu writes in the Diplomat, here there is no reason to worry. China is encouraging outbound investment programs, and then it is hardly a concern when capital actually leaves the country.Read More →
China has accumulated debts US$25 trillion and because of the relative high interest rates, that level of debt is unsustainable, argues financial analyst Victor Shih at the USC U.S.-China Institute. And when China gets into trouble, there is no IMF-style institution with enough capital to save it. A crashing stock market also does not help.Read More →
Step by step, China takes its currency global. The latest move, the launch of the China International Payment System (CIPS) this fall, marks another step forward, writes financial analyst Sara Hsu in the Diplomat.
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China announced in 2013 reforms of its financial systems so that rural areas and smaller companies, always denied access to capital, get more access. But the results are very mixed, writes financial analyst Sara Hsu in the Diplomat.Read More →
China´s much needed anti-corruption drive has now put the country into a lock-down mode, and new projects have halted, tells business analyst Shaun Rein at CNBC. The cut in the reserve ratio ratio (RRR) this weekend is one way for a kickstart, although nobody know what will really work.Read More →
China´s central government is pushing offshore RMB bonds as a tool to support Chinese firms to go abroad. Financial analyst Sara Hsu looks at the current state of offshore RMB bonds, and expects a massive expansion, she writes in the Diplomat.Read More →