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.
Category Archives: debts
The expectations of yet another government stimulus plan might have to be shelved, as the decline of economic growth is stalling, writes Reuters’ columnist Wei Gu in BreakingViews.
China’s GDP has depended largely on huge investments in infrastructure, rather than consumption. Economic analyst Arthur Kroeber argues in IBNLive that this policy is not longer possible, although ending it might be a tough call as the political transition asks for stability.
Economist Heleen Mees is making her first inroads into the US media with her PhD, blaming Chinese savings as the basis for the current financial crisis. But they got help, explains Heleen Mees in CNBC, as Ben Bernanke, chairman of the US Federal Reserve, triggered of aggressive rate cuts from the early 2000s.
Disposed Chongqing leader Bo Xilai might have left behind a more prosperous city, that wealth comes at a price, as Chongqing’s debts are far higher than China’s average of already high liabilities, tells financial expert Victor Shih in the Wall Street Journal.
The anti-China commercial by Michigan Republican Pete Hoekstra contained so many mistakes, it takes a row of experts to set the record straight. In The New Yorker financial expert Victor Shih looks at the suggestions China is running away with US money.
China is not going to bail out Europe, tells business analyst Shaun Rein at CNBC, only Europe itself can save Europe. China has its own problems, although consumption is expected to rise for the wealthy, while the poor get hit hard by inflation.
The financial crisis in both Europe and the US is deepening, so it is no wonder that the November top-10 of most sought-after speakers has a few of our financial specialists on top. Both Shaun Rein and Victor Shih have been trying to dispel especially European hopes China could bail their economy out.
No, says business analyst Shaun Rein, when he has to answer the questions whether China should use its foreign currency reserves to support the European Financial Stability Facility (EFSF). In CNBC he argues that Europe should hold up its own financial pants.