China´s financial authorities have a hard job in controlling the flows of hot capital in and out the country. Often misinvoicing is a way to mask those money flows. Financial expert Sara Hsu offers in the Diplomat a way to track this long-standing tradition of misinvoicing.Read More →
Two weeks ago financial expert Sara Hsu had a thorough look at the complex and very different products that constitute the shadow banking industry in China. For Triple Crisis she summarized those products and risks in a useful framework, allowing assessing risk levels of different products.Read More →
A first US$ 600 million default of a real estate company might be the beginning of more, tells business analyst Ben Cavender at Tradingfloor.com. Slower growth might trigger off more default in real estate, and the government will try to control the process, not bail everybody out.Read More →
Financial analysts look at the financial risks of shadow banking from both extremes, some signal a looming collapse of China´s financial system, others claim there is not much to fear. For TripleCrisis shadow banking expert Sara Hsu explores the different kinds of financial products and their risks.Read More →
Among the range of reform plans set off by president Xi Jinping the liberalization of interest rates is a critical one, writes financial expert Sara Hsu in the Diplomat. It will move China closer to a market-oriented economy.Read More →
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 →
China´s shadow banking industry escaped narrowly a major default in the last week of January, but more troubles is building up for the rest of 2014 as more trust funds are running into trouble, including gold mine scams, tells financial analyst Sara Hsu in the South China Morning Post.Read More →
China´s financial authorities have started to allow the first private banks, in a sector where up to recently only state-owned banks dominated the banking sector. A positive sign for reform, writes financial expert Sara Hsu in the EastAsiaForum. But a very, very modest one, she adds.Read More →
A narrow escape from default of the USD495 million of the trust fund, organized by the ICBC for the Shanxi Zhenfu Energy Group in the last week of January, is not the end of the troubles for other trust funds, writes shadow banking expert Sara Hsu in The Diplomat. “A liquidity crisis might expose more problems.”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 reforms announced after the Third Plenum might not offer a enough to guarantee financial stability in China, writes financial specialist Sara Hsu in Triple Crisis. China’s financial authorities should focus on shadow banking, in stead of monetary tightening that could slow down economic growth.Read More →