China has announced it will cut salaries of key managers at its state-owned banks. A bad idea, tells political scienist and financial analyst Victor Shih in Businessweek. An exodus of bankers would cause “a big mess”.Read More →
One of the reforms in China have changed the way it´s central bank is operating, writes financial analyst Sara Hsu in the Diplomat. A new set of tools allows the bankers to be more creative.Read More →
Lower barriers to capital accounts, make it easier to trade in China´s currency, the Renminbi. Offshore trading centers expand, at the country builds up it financial leverage. Financial analyst Sara Hsu has a look at the expanding RMB clearance banks in the Diplomat. After Hong Kong, London, Frankfurt and Seoul, Paris and Luxembourg followed.Read More →
China´s corporate debt last week outstripped the US, according to a report by Standard and Poor´s, a staggering US$14.2 trillion at the end of 2013. But it is not only the size that matters, writes financial analyst Sara Hsu in the Diplomat. China´s corporate debts is very different from that in the US.Read More →
Fraud and scandals have been dragging real estate and commodities down in Northeaster Qingdao, with real estate prices dropping up to 30 percent. Financial analyst Sara Hsu sees it as a potential scenario for shadow banking in more parts of China, she writes in the Diplomat.Read More →
Dire predictions for the trust industry have not materialized, because of smart interventions by China´s financial authorities. But that does not mean the industry is off the hook, writes financial analyst Sara Hsu in The Diplomat. Danger from the property market will remain till the end of 2014.Read More →
China is about to start regulating its financial jungle of wealth management products, one of the causes of its giant shadow banking system. Time to protect the consumers against those risky products, writes financial analyst Sara Hsu in the Diplomat. An overview of the regulationsRead More →
Liberalization of the interest rates is a first important step in financial reforms, but it is not enough, tells financial analyst Sara Hsu in the EastAsiaForum. Next the state needs to let the state banks go.Read More →
After Alibaba filed this week its paperwork for its upcoming IPO. Business analyst Ben Cavender looks at its great profitability, but also risk from competition in e-commerce and fear for pressure fro the big Chinese banks.Read More →
China´s financial authorities try to fight illegal fundraising, as one of the features of shadow banking. Financial analyst Sara Hsu give in The Diplomat an overview of this tradition, that has boomed with the country´s economic growth.Read More →
China has promised wide-ranging financial reforms, moving from repression to the market. That is a much-needed change tells economist Arthur Kroeber in the Institutional Investor, to allow household to use their earnings in a more sensible way.Read More →
Some second and third tier cities in China report house buying has come to a standstill, while high-end property markets in first tier cities report a huge influx of buyers from China. Financial analyst Sara Hsu looks in the Diplomat at both opposing trends and how the middle class might get hit.Read More →