The scandal that rocked the once-famous private Minsheng bank has put the question of the role of the government towards the banking system. Bailing out banks create more problems than it solves, says financial analyst Victor Shih to the New York Times.
Category Archives: finance
Financial analyst Sara Hsu looks at the new chairman of the China Banking Regulatory Commission (CBRC), Guo Shuqing, and the man he replaces, Shang Fulin. What has Shang done to deal with this murky financial sector, and can Guo do better, she wonders in Asia Times.
Kweichow Moutai, China’s favorite booze, passed on Friday with US$71.5 billion Johnny Walker owner Diageo as the world’s most valuable drink despite its dependency on the China market. They have made all the right moves, tells business analyst Shaun Rein to CNN, despite president Xi Jinping’s anti-corruption drive.
US companies profit already a lot from the trade relations with China, says China veteran Tom Manning to CNBC and the country is already liberalizing its economy. Those will be the two arguments China’s Xi Jinping will bring into the meeting between presidents Donald Trump and Xi Jinping, Manning says. This meeting will be only a start of a relationship at best.
As long as funds are flooding the bike-renting business, the dance will go on. But, warns Beida business professor Jeffrey Towson at his website, when the music stops, the dancing will be over. Consumers might be the winners, as long as the music plays.
China annual political meetings passed without any great upheaval, but not all is well for president Xi Jinping, writes veteran journalist Ian Johnson, author of The Souls of China: The Return of Religion After Mao in the New York Review of Book. No legal reforms, no successor, and then there is the economy.
Business analyst Andy Mok has nine take-away’s from this week’s central bank’s press conference. Fintech and startups got priority from the government, he writes in CGTN, and they prepare for global expansion. But domesticallly virtual currencies and digital payment systems are kept under control to avoid capital flight.
On one hand China tries to embark with “One Belt, One Road” on a massive global expansion. But financial limitations on the outflow of capital go against that. Those conflicting messages makes business people worried about what road to take, says business analyst Shaun Rein to the South China Morning Post.
The government has been pulling in bad loans, rather than letting companies face bankruptcy and letting the markets do the job. For China’s leaders stability is key, says Beida accounting professor Paul Gillis to Reuters.