The devaluation of the yuan was right, argues economist Arthur Kroeber, according to the Washington Post. But the timing was most unfortunately, leading to the – wrong – conclusion the central government was taking panic measures.Read More →
Some see the devaluation of the yuan as a panic measure by the Chinese government to reignite growth, but market analyst Ben Cavender tells the Guardian why the depreciation is mainly market driven, making the yuan freer from the US dollar peg.Read More →
Many analysts tumbled over each other to dismiss China´s record devaluation of its currency. But financial analyst Arthur Kroeber disagrees, and says it is a necessary move to financial reforms in the middle and long term, CityWire writes.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 →
Heated arguments still rage on the effect of the recent downturn of China´s stock markets. And while the government dealt badly with the financial markets, the effect on China´s economy will be limited, writes economist Arthur Kroeber in ChinaFile.Read More →
Economist Arthur Kroeber spells out three worries for China in the Business Standard. The stock market, short-term growth and long-term growth and reform. Here is his first worry. Damage to the economy seems limited.
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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 →
The recent downturn in the stock market and the government restrictions on money capital transfers might hit transfers in China´s football leagues, says financial analyst Victor Shih to Associated Press. “It is a general problem for wealthy people in China who are major shareholders in companies,”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 →
Much noise has been produced in the past year on how state-owned companies might or might not reform. Political analyst Victor Shih, author of Factions and Finance in China: Elite Conflict and Inflation does not see that much genuine reform, he tells the China Economic Review. Read More →
Two years ago, China promised market forces will enter the financial arena. But is has been a mixed message from the start, and after the government tried to save a dropping stock market, financial analyst Arthur Kroeber looks for the Brookings Institute at what has happened.Read More →
Innovation, and its related funding, did get a solid footprint in China over the past few years, making even startups in Silicon Valley jealous. And we can expect more, tells William Bao Bean, managing director of China´s largest incubator ChinaAccelerator, in the New York Times.Read More →