Debts are high on the agenda of the central and local governments, as local resources to pay debts of get capital for investments diminish, tells associate-professor Victor Shih in Bloomberg. The efforts of the central government to relieve local governments from debts might not help everybody.Read More →

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.Read More →

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.Read More →

Smaller developers are the first ones to feel the contraction of China´s real estate market, writes financial analyst Sara Hsu in the Diplomat. The US$23 million default of the Kaisa group might only be the beginning or more trouble.Read More →

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.Read More →

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.Read More →

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.Read More →

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.Read More →

Last year China promised it would not bail out its unruly financial sector. It still did. It promised swiping financial reforms. They did not materialize. Financial analyst Sara Hsu discusses the current state of China´s finance and what the government should do. Asking questions are Chao Pan and Fons Tuinstra.Read More →