The efforts by China´s financial authorities to reduce the outflow of capital has already reduced many investment plans by the China. But financial analyst Victor Shih sees a few more holes in the country´s policies that might be stopped soon too: education and tourism, he tells Sourceable.
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China sees a massive capital flight, putting its currency, the yuan, under pressure. For that reasons, says accounting professor Paul Gillis to the VOA, are capital flight and China´s garage sale of US treasuries closely linked.
Increased government restrictions on the outflow of capital will severely impend the outbound M&A activities in the first quarter of 2017, after a record year in 2016, expects business analyst Shaun Rein, according to the South China Morning Post.
Almost all Chinese consumers use their mobile phone to pay, most overwhelmingly by Alipay. Fintech expert Andy Mok discusses at CCTV the implications. The technology is inplace, but the regulators are still slowing the implementation, he says. Regulation by the government is unavoidable, but in a way that serves the consumers.
Now a massive row of Chinese companies, including Alibaba, are preparing for IPO´s, both at home at abroad, insights in China´s financial industry are more important than ever,
The government wants to allow market forces to decide what financial direction the country is taking, and because more than even capital is owned by Chinese citizens, just looking at what the central government in Beijing is doing, is not longer good enough.
2016 is going to be the year where outbound investments from China are going to be a major story. Not only generate IPO´s from Alibaba and JD, much capital that used to be locked up in China, is now looking for opportunities to go abroad. A few of our speakers at the China Speakers Bureau focus on that development.
While China´s financial regulators have tried to prevent previous market panics, smaller banks have behind their backs been expanding credit lines to wealthy clients, says economist Arthur Kroeber, author of China’s Economy: What Everyone Needs to Know® to Dow Jones. The regulators now try to rein in those tools.
China´s economy seems to have steered clear through the turbulance of the past few years, says economist Arthur Kroeber, author of China’s Economy: What Everyone Needs to Know® to Bloomberg. “I’d guess that Xi Jinping is feeling pretty confident about things.”
From a cash country, where transactions were done by moving plastic bags with money between bank branches, China has turned into a leading force in fintech or financiel technology. Mobile payment are standard. Bitcoins and blockchain technology found in China early adopters. Social media have – more than anywhere in the world – adopted payment systems to facilitate online trade.