Blog Archives

China´s jobless numbers are meaningless – Sara Hsu

While the government is fearfully watching China´s number of jobless, the official figures have very little meaning, says financial analyst Sara Hsu at the Deutsche Welle. “We do not even know the labor force participation rate, which is essential in calculating the unemployment rate.”

Cap-and-trade scheme: step forward – Sara Hsu

While much work remains to be done, China and the US has set an important step forward in curbing carbon emissions, writes analyst Sara Hsu in the Diplomat. “At present, China’s cap-and-trade systems do not address price distortions in the nation’s socialist economy.”

China, US BIT agreement win-win for both – Sara Hsu

When President Xi Jinping visits Washington next week, there is a fair chance the long-awaited bilateral investment treaty (BIT) between China and the US might get finalized. A win-win for both countries, writes financial analyst Sara Hsu in the Diplomat.

A circuit breaker: a symbolic market tool – Sara Hsu

China´s stock market regulators launched the idea of a circuit breaker, to avoid heavy swings at the markets. The market would be stopped for 30 minutes after an upswing or downswing of more than five percent, at most once a day. Highly symbolic, writes financial analyst Sara Hsu in the Diplomat, and it cannot be a proxy for real reform.

China stops manipulating the yuan and gets flak from Washington – Sara Hsu

Financial analyst Sara Hsu strongly disagrees with former US ambassador to the UN John Bolt as he accuses China it manipulated its currency by the recent devaluation. China is just doing what politicians in Washington have asked them to do, Hsu argues in PressTV. “They wanted China to become more market oriented.”

Time to take insider trading serious – Sara Hsu

The China Security Regulatory Commission (CSRC) has, again, announced it will act harshly in the case of insider trading. Rightfully so, writes financial analyst Sara Hsu in the Diplomat. But it is not enough.

Can China halt climate change? – Sara Hsu

China has recently announced ambitious environmental plans to stave off climate change. But are those plans enough, and can China really deliver? Economic analyst Sara Hsu welcomes the plans at Triple Crisis, but wonders if it is going to work.

The official reason for the devaluation is correct – Sara Hsu

There are two schools of thought on China´s recent devaluation of the Yuan. A group of analysts, like Victor Shih and Tom Doctoroff, believes the central government is in panic and tries to jump-start economic growth. Others like Arthur Kroeber and Nicholas Lardy join the official explanation, telling us the move is market-driven, and good for its international standing. Financial analyst Sara Hsu joins the last group, in the Diplomat.

CIC got US$ 100 Billion to distribute over Silk Road projects – Sara Hsu

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.

Not to worry about capital flight – Sara Hsu

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.