President Xi Jinping has been addressing the nation on the 95th anniversary of the Communist Party and the tough Marxist tone has been striking, says political analyst Victor Shih. Where his predecessors followed a more flexible road on economic development, Xi goes for a nationalistic approach, he tells AP.
China has been preparing for the fallout of a decision of the Federal Reserve, but find themselves dealing with an unexpected black swan, says financial and political analyst Victor Shih to Bloomberg. The Renminbi might be under pressure.
Making sense out of Beijing`s recent financial direction is hard, even for veteran political and financial analyst Victor Shi. In the Wall Street Journal, he tries to give it a shot. “As with any addiction program, the first step is to admit you have a problem.”
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.