Blog Archives

Will the Tobin tax work in China? – Victor Shih

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.

Fiscal deficit divides lawmakers – Victor Shih

China´s lawmakers arrive in Beijing for their annual meeting and finance is high on their agenda´s. And opinions are divided, says political analyst Victor Shih to Bloomberg, for example when it comes to the fiscal deficit.

New credit only helps state-owned enterprises – Victor Shih

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.

Shake-up at financial regulator does not mean change – Victor Shih

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.

Central bank moves in to ease turmoil – Victor 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.

How much foreign reserves China can afford to lose? – Victor Shih

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.

Maintaining high growth just not an option – Victor Shih

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.

China´s melting foreign reserves – Victor Shih

China has been throwing much foreign reserve to maintain the value of its currency, the yuan. Financial analyst Victor Shih says in Bloomberg that while there is no acute problem, not all is well after hundreds of billions have evaporated.

China bond markets: tin ice for foreign investors – Victor Shih

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.

China´s economy bubbles into more problems – Victor Shih

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.