The China Investment Corporation (CIC) obtained 100 billion US$ bond issue from the Ministry of Finance to finance the One Road, One Belt initiative, writes financial analyst Sara Hsu in The Diplomat. Although CIC has been initially less successful, Hsu expects China´s largest sovereign wealth fund will be able to make a huge profit.
Category Archives: debts
The recent downturn in the stock market and the government restrictions on money capital transfers might hit transfers in China´s football leagues, says financial analyst Victor Shih to Associated Press. “It is a general problem for wealthy people in China who are major shareholders in companies,”
China has accumulated debts US$25 trillion and because of the relative high interest rates, that level of debt is unsustainable, argues financial analyst Victor Shih at the USC U.S.-China Institute. And when China gets into trouble, there is no IMF-style institution with enough capital to save it. A crashing stock market also does not help.
President Xi Jinping anti-corruption drive has opened a new front as land sales by local governments are surveyed by the central government, notes financial analyst Sara Hsu in TripleCrisis, and she applauds the move. Much of the social unrest in the past years has been caused by those transaction, where citizens often lost from greedy officials.
Scholar Victor Shih is interviewed by the China Daily, on how he analyzed the links between different factions in China´s politics. A dive into China´s capital markets since 2009, achieved Victor Shih high praise as one of the first to document China´s serious debts.
The recent predictions on China´s economic development could not have been more different. The Conference Board predicts gloom. The Asia Society finds China is ready for sweeping reforms. Our financial analyst Sara Hsu see slower growth, but also room for reforms, she writes in the Diplomat.
China has a long tradition of manipulating its financial data to meet its political needs. That ability is still prominently present, also today, says political scientist Victor Shih in the Global and Mail. China´s economy is much weaker than official figures suggest.
China has a longstanding tradition in creating huge debts, and the burden has been growing over the past year, as the government decided to bail out failing companies, rather than let them collapse. That system has to change, writes financial analyst Sara Hsu in the Diplomat.