China is preparing a Tobin tax, a tax on capital transactions. At this stage for a zero percentage, but the writing is on the wall. It´s effect on China´s currency depends very much on how the government is going to use this tool, says finance professor Victor Shih in Bloomberg.
China is trying to boost the economy by opening its credit lines again, but that credit mainly serves the state-owned companies, while the private sector is suffering, explains financial analyst Victor Shih in Bloomberg.
The surprise dismissal of China´s financial regulator Xiao Gang does not mean that its policies and approach are really going to change, says political analyst Victor Shih in the New York Times. His successor Liu Shiyu is certainly no bold reformer, says professor Shih.
The governor of China´s central bank, the People´s Bank of China, Zhou Xiaochuan tried to ease the expected turmoil on the financial markets ahead of their opening after Lunar New Year. Zhou tries to save the few reforms he was able to achieve, says financial expert Victor Shih to Bloomberg.
China has been losing massive foreign assets trying to manage its unruly financial markets. Financial analyst Victor Shih believes that for Beijing, alarm bells might to off when foreign reserves go under US$3 trillion, he tells at Bloomberg. And we might be at that point fast.
The ´New Normal´ it is called, the lower (but still considerable) economic growth China is displaying. High growth is over, says political analyst Victor Shih in the Hellenic Shipping News. Maintaining high growth is just too expensive, he argues.
While the central government is eager to get foreign investors into its bond markets, they should care very careful in doing to, says Victor Shih, assistant professor political science, UC San Diego and leading author on the relation between political and financial factions in China, in Bloomberg.
Things look not well for China´s economy, say a range of economists to Bloomberg. They include political and financial analyst Victor Shih, who fear the lack of income might force China into even larger debts, as it wants the economy to keep on humming.