Among the range of reform plans set off by president Xi Jinping the liberalization of interest rates is a critical one, writes financial expert Sara Hsu in the Diplomat. It will move China closer to a market-oriented economy.
Category Archives: People’s Bank of China
China´s Yuan has been falling sharply against the US Dollar in the past week, and much debate emerged on what might be the politics behind this. It only means China´s central bank PBOC is doing its job as a circuit breaker by letter hot money out of the economy, writes financial analyst Michael Justin Lee in the ChinaUSFocus.
With large companies like Alibaba and Baidu entering the financial industry, P2P lending has become a major issue in China, as common bank loans are hard to get. But there are huge risks involved, writes financial analyst Sara Hsu in The Diplomat, as the new ventures lack essential transparency.
At the recent World Economic Forum in Davos, Switzerland, shadow banking loomed as a threat over China´s economic future. Financial analyst Michael Justin Lee does not agree, he writes in the ChinaUSFocus. Yes, the country has growing pains, but is not on the way to collapse.
January 31 is going to be a major test for the shadow banking in China, as a 3 billion RMB fund matures, without support of the larger banks. One of the main victims could be China´s SME, who had to turn to shadow banking as officials refused them funding, writes financial specialist Sara Hsu in the South China Morning Post.
Bitcoin expert and former serial entrepreneur in China Marc van der Chijs gives on his weblog his view on the latest developments of Bitcoin. Unlike the common opinion, Van der Chijs believes China is not trying to ban the bitcoin, but tries to contain the new financial feature.
Most Western media did not pay attention when China´s central bank entered the interbank market at the last week of 2013. Wrong, says financial analyst Michael Justin Lee in ChinaUSFocus. ” It means China continues to ease on down the road to capitalism. It’s a rocky road but the only road we’d want China to be on”.
The bears are out in full force again, as the growing burden of governmental debts is possibly pulling the Chinese economy down. Some media even suggested China is heading for its own Lehman debacle. Is that true, of just part of the spinning inevitable before the Third Plenum is gathering in November for its key meeting on China’s reform. Can and will the government bail out the banks and local governments?
The party is over for Chinese banks, shadow banking expert +Sara Hsu concluded (together with co-author Andrew Collier) at the EastAsiaForum.com. Regulator can no longer turn a blind eye, as loans put local governments and private lenders into trouble.
Shadow banking covers about 25% of China’s financial industry, and poses a threat to the country’s future. Shadow banking expert Sara Hsu fears that these riskier ways of getting finance, shadow banking might collapse and wipe away the savings of many Chinese, if the government does not step in, she tells at the China Weekly Hangout.