Although there is no reason to believe China´s economy is heading for a crash, the lack of real structural reforms still makes investors worried, writes economist Arthur Kroeber for the Brookings Institute and author of China’s Economy: What Everyone Needs to Know? While the state sector was supposed to shrink, it continues to grow.Read More →
China has been preparing for the fallout of a decision of the Federal Reserve, but find themselves dealing with an unexpected black swan, says financial and political analyst Victor Shih to Bloomberg. The Renminbi might be under pressure.Read More →
While the world is trying to get to grips with the fallout of a possible Brexit, very few of the effects for China can be sure, with the exception of the currency trade, says economist Arthur Kroeber to Bloomberg. At this stage, the risks seem fairly limited.Read More →
China´s debts level has reached record heights, but the state will continue to guarantee sovereign debts, writes financial analyst Sara Hsu. And that support is also extended to state-owned companies like Cosco and ChemChina, despite downward pressures from the rating agencies, she argues in the Diplomat.Read More →
While the Chinese stock markets did not plunge after trade resumed after the Chinese New Year, business analyst Shaun Rein expects the markets to remain volatile for the next 3 to 4 months, he tells Money Control.Read More →
Almost a trillion US dollar worth of capital has left China over the past year, showing a profound lack of confidence among its citizens, tells business analyst Shaun Rein in the New York Times. “Companies don’t want renminbi and individuals don’t want renminbi.”Read More →
China has faced a record outflow of capital since the end of 2015. Efforts to stop that outflow, maybe needed, delay severely the planned liberalization of the financial markets, writes financial analyst Sara Hsu in the Diplomat. “The rate of change is dissatisfying to those calling for reform.”Read More →
China has been losing massive foreign assets trying to manage its unruly financial markets. Financial analyst Victor Shih believes that for Beijing, alarm bells might to off when foreign reserves go under US$3 trillion, he tells at Bloomberg. And we might be at that point fast.Read More →
China has been throwing much foreign reserve to maintain the value of its currency, the yuan. Financial analyst Victor Shih says in Bloomberg that while there is no acute problem, not all is well after hundreds of billions have evaporated.Read More →
Nothing is moving fast, but slowly China´s central bank PBOC will loosing its traditionally iron grip on its currency, writes financial analyst Sara Hsu in the Diplomat. Linking the Renminbi to a basket of currencies in stead of only the US dollar failed in the past, but might work out now.Read More →
The badly handled crisis at the stock markets and the unfortunate devaluation of China´s currency are still casting shadows on the country´s financial future, says economist Arthur Kroeber at CNBC. At this stage it is very unclear whether the central government has the capability to handle needed financial reforms.Read More →
One of the reasons financial markets went out of control, is because president Xi Jinping is mostly focused on politics and geopolitical ambitions, says political analyst Arthur Kroeber in the Washington Post. Read More →