The default of the Chaori Corporate Bond might signal a change in China´s approach of shadow banking, more structural measures are needed to guarantee the country´s financial stability, writes financial expert Sara Hsu in The Diplomat.Read More →
January 31 is going to be a major test for the shadow banking in China, as a 3 billion RMB fund matures, without support of the larger banks. One of the main victims could be China´s SME, who had to turn to shadow banking as officials refused them funding, writes financial specialist Sara Hsu in the South China Morning Post.Read More →
Trust companies have been taking on much of the local debts haunting China’s economy. And most of their debts come from domestic investors in China, who bear most of the risk, when things go wrong, writes financial expert Sara Hsu in this weblog.Read More →
Speculative investments in shadow banking are raising concerns for a economic slowdown in China, writes financial expert Sara Hsu in The Diplomat. She pleads for dealing with shadow banking in stead of monetary tightening.Read More →
The reform plans from president Xi Jinping asks for a notable reshuffle of power relations in China, notably from the powerful local governments to the central government. It takes “brute force”, says economist Arthur Kroeber in Bloomberg to reorganize local finances.Read More →
The bears are out in full force again, as the growing burden of governmental debts is possibly pulling the Chinese economy down. Some media even suggested China is heading for its own Lehman debacle. Is that true, of just part of the spinning inevitable before the Third Plenum is gathering in November for its key meeting on China’s reform. Can and will the government bail out the banks and local governments?Read More →
The latest fiscal crisis in the United States worried China, but there is very little that can be done by China, says economic analyst Arthur Kroeber in the News Oberver. Although there is clear resentment against a world following rules set by the US, China also profits from it, he adds.Read More →
The party is over for Chinese banks, shadow banking expert +Sara Hsu concluded (together with co-author Andrew Collier) at the EastAsiaForum.com. Regulator can no longer turn a blind eye, as loans put local governments and private lenders into trouble.Read More →
China’s GDP has depended largely on huge investments in infrastructure, rather than consumption. Economic analyst Arthur Kroeber argues in IBNLive that this policy is not longer possible, although ending it might be a tough call as the political transition asks for stability. Read More →
Disposed Chongqing leader Bo Xilai might have left behind a more prosperous city, that wealth comes at a price, as Chongqing’s debts are far higher than China’s average of already high liabilities, tells financial expert Victor Shih in the Wall Street Journal.Read More →
The anti-China commercial by Michigan Republican Pete Hoekstra contained so many mistakes, it takes a row of experts to set the record straight. In The New Yorker financial expert Victor Shih looks at the suggestions China is running away with US money.Read More →
China is not going to bail out Europe, tells business analyst Shaun Rein at CNBC, only Europe itself can save Europe. China has its own problems, although consumption is expected to rise for the wealthy, while the poor get hit hard by inflation.Read More →