The New York stock exchange has begun the process of delisting three Chinese telecoms companies as it seeks to comply with an order by the Trump administration barring investment in firms with ties to the Chinese military. It comes as… Read More ›
Finance
China joins Russia and allies experimenting blockchain tech to dethrone USD
“China, Iran, Venezuela are developing crypto in effort to dethrone US”, reported by Yahoo Finance on July 11, quoting a report published by the Foundation for Defense of Democracies (FDD). Cryptocurrency is a medium of exchange in digital form, and… Read More ›
US-China ‘trade’ war, if not ended soon, may spill over to ‘finance’
“On the international monetary front, the key problem was the acute dollar shortage in post-war Europe … In the effort to reconstruct a viable Western Europe, the United States conceded degrees of protection and discrimination in trade that were incompatible… Read More ›
Cadence Column: Asia, July 3, 2017
China views Hong Kong as a doorstep between the world and largely otherwise closed China. This week, investment highways opened, allowing easier offshore investments in China’s bond market. At the same time, the world gets a glimpse into Chinese dealing… Read More ›
China halts stock trading after 7% rout triggers circuit breaker
The worst-ever start to a year for Chinese shares triggered a trading halt in more than $7 trillion of equities, futures and options, putting the nation’s new market circuit breakers to the test on their first day. Trading was halted… Read More ›
Understanding the two Chinas
Our view that China may be heading for a mild cyclical upswing next year needs to be set against the background of the broader economy, which is changing rapidly. We think that it makes sense to view the economy as… Read More ›
China has a $1.2 trillion Ponzi finance problem
Chinese borrowers are taking on record amounts of debt to repay interest on their existing obligations, raising the risk of defaults and adding pressure on policy makers to keep financing costs low. The amount of loans, bonds and shadow finance… Read More ›
The one thing holding back China’s yuan
While China may be the world’s second largest economy, the future of the yuan playing a bigger role in international markets is clouded by politics. Earlier this fall, the IMF postponed a scheduled update of the designated basket of reserve… Read More ›
What could really disrupt China’s economy?
In an earlier post, I explained why I’m still bullish on China’s economy. But as the events of the past few months have shown, the risks of economic disruption are real. Here are several potential risks that could throw China’s… Read More ›
A massive Chinese industry is flashing warning signs that the world cannot ignore
China’s steel industry, the world’s biggest, is in crisis. The disaster is the result of a combination of factors, including a slowing Chinese economy, falling commodity prices, and an industry loaded with debt. Earlier this month, state-owned enterprise (SOE) Sinosteel… Read More ›
10 things the Communist Party wants you to believe about China’s next five-year plan
The Chinese newspaper that serves as the ruling Communist Party’s mouthpiece has outlined 10 objectives that are expected to lead to breakthroughs on the mainland in the next five years. The targets were revealed on thePeople’s Daily’s Weibo account as… Read More ›
Western companies are being forced to figure China out all over again as sales plummet
Foreign companies have long known that China’s economic slowdown—now upon us—could hit their earnings hard. They just didn’t expect they’d be hit by changing consumer buying habits and a rise in Chinese competitors at the same time. Suddenly, foreign brands… Read More ›
China’s SWIFT alternative (CIPS) and the engineered death of the dollar
Forget all the nonsense and hoopla about the Apple Watch or the GM stock buy-back. Far and away the most important economic story of the week is one you won’t find on the front page of Bloomberg or MarketWatch. New… Read More ›
China stock market crash; biggest one-day drop since 2008
China stocks suffered their biggest one-day percentage drop in more than six and a half years, dragged down by record tumbles in financial stocks as authorities battled excessive market speculation. Regulators cracked down on margin trading, which has been blamed… Read More ›
Three major nations absent as China launches World Bank rival in Asia
As Japan and the US will not allow China to increase its stake in the Asian Development Bank (ADB) and World Bank, China set has set up a multinational rival bank called the Asian Infrastructure Investment Bank (AIIB). 21 countries… Read More ›
The Great Chinese Exodus; 64% of China’s rich plan to leave
Many Chinese are leaving for cleaner air, better schools and more opportunity. But Beijing is keeping its eye on them. Even when the emperors did their utmost to keep them at home, the Chinese ventured overseas in search of knowledge,… Read More ›
China’s Xi goes to South America to break US dominance
Reuters today reported on Xi Jinping’s goal of pushing for the developing world’s rights. Reuters quote Chinese President Xi Jinping as saying in an interview with South American media, “China would try to better play the role of a responsible… Read More ›
China PMI steadies, but doesn’t dispel growth worries
Activity in China’s factories increased marginally in April but export orders fell sharply, a government survey showed on Thursday, adding to questions about whether the world’s second-largest economy is stabilizing after its first-quarter slowdown. The data came a day after… Read More ›
China poised to pass U.S. as world’s leading economic power this year
The U.S. is on the brink of losing its status as the world’s largest economy, and is likely to slip behind China this year, sooner than widely anticipated, according to the world’s leading statistical agencies. The US has been the global leader… Read More ›
In wealthy Chinese city, debt guarantees spark default contagion
A network of loan guarantees set up to improve companies’ access to credit in one of China’s richest districts is creating new risks of default as some debts sour, another sign of how private firms are bearing the brunt of… Read More ›
Is China on final approach to an economic crisis?
January’s PMI data for China’s manufacturing sector, as released by Markit Economics and HSBC, showed a marked decline in production activity. More disturbing, however, is their analysis on the individual sectors of the manufacturing economy. According to the report, firms… Read More ›
Mega default on January 31 could devastate China’s banking system
On Friday, Chinese state media reported that China Credit Trust Co. warned investors that they may not be repaid when one of its wealth management products matures on January 31, the first day of the Year of the Horse. The… Read More ›
China’s BYD fined for paying Chinese workers $1.50 per hour in California
BYD is a mainland Chinese company, specialising in green technologies. Shares in the company are traded on the mainland in Shenzhen and off-shore in Hong Kong. The company is controlled by the co-founders. Berkshire Hathaway, Warren Buffett’s holding company, owned… Read More ›
China to open banking sector to private capital
China‘s cabinet has unveiled plans to set up more private banks to boost financial support for cash-starved smaller firms, in the latest bid to bolster the slowing economy. “We will actively develop small-sized financial institutions and open up the channel… Read More ›
Risks to China recovery seen as factory output underwhelms
China’s factory output growth was surprisingly feeble in April and fixed-asset investment slowed, rekindling concerns that a nascent recovery is stalling and adding to pressure on policymakers to take action to stimulate the economy. However, China’s already-easy monetary policy and… Read More ›
A shift in Chinese strategy on North Korea?
There seems to have been a shift in Chinese-North Korean relations as the Bank of China has stopped its business with a North Korean bank: Bank of China Ltd. said it cut off dealings with North Korea’s primary foreign-exchange bank… Read More ›
China sends mixed messages
After last year’s leadership transition, many U.S. firms doing business in China hoped to see an expansion of trade and an easing of regulations in 2013. The sudden openness of the Chinese media and Xi Jinping’s apparent crackdown on corruption… Read More ›
China’s recent trade statistics have been artificially inflated
Until now, Beijing’s monthly import and export numbers have been considered absolutely reliable, yet there is growing evidence to suggest that in recent months they have been distorted by fabricated transactions. Especially suspect are the export figures for this September… Read More ›
China’s unique opportunity with foreign banks; must liberalise quickly to become top global financial hub
Economic growth in China for this year is projected to be 7.7% and while this figure is one most countries around the world are highly envious of, it’s low by Chinese standards. But that does not mean that every sector… Read More ›
Bo’s successor woos more foreign investors for Chongqing
Chongqing‘s party boss has told a group of visiting business leaders from Hong Kong and abroad that the municipality will be more open to foreign investment, in a bid to reassure them in the wake of Bo Xilai‘s downfall. “Chongqing… Read More ›
Foreign investors in China get a break
China will relax controls on qualified foreign institutional investors (QFIIs) soon, following a decision to nearly triple the amount they can spend. Regulators plan to scrap the requirement that a QFII invest at least half of its funds in stocks,… Read More ›
China’s top court spares woman death penalty in fraud case
China’s top court on Friday overturned a death sentence for a self-made Chinese businesswoman convicted in a multi-million dollar scheme to bilk investors, in a contentious fraud case that sparked sympathy for the self-made daughter of a peasant. Wu Ying,… Read More ›
China draft regulations target futures market fraud
China’s securities regulator issued draft regulations on Friday that aim to crack down on deceptive practices in the country’s securities futures markets through increased supervision and “name and shame”-style disclosure of chronic offenders, official media reported on Friday. The draft… Read More ›
Pushing the envelope – Inside China’s vast shadow banking sector
Wu Ying’s rise to riches was like a Horatio Alger story on steroids. A native of Zhejiang province, Wu dropped out of college to work in a beauty salon, then later opened her own salon down the street. By 2006,… Read More ›
