The default of the Chaori Corporate Bond might signal a change in China´s approach of shadow banking, more structural measures are needed to guarantee the country´s financial stability, writes financial expert Sara Hsu in The Diplomat.
Category Archives: debts
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.
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”.
Trust companies have been taking on much of the local debts haunting China’s economy. And most of their debts come from domestic investors in China, who bear most of the risk, when things go wrong, writes financial expert Sara Hsu in this weblog.
As stories about sky-high debts go around in China, and operational costs rise, WSJ wealth editor Wei Gu discusses with Oliver Rui, co-director of CEIBS Kaifeng Center for Family Heritage, the most important lesson from Asia’s richest man, Li Ka-shing: keep your debts low, especially when rising costs hurt your business.
Mario Cavolo, Vice President of Scott PR China, has this week joined the China Speakers Bureau. Mario’s ground-shifting book on over 10 trillion US dollars worth of savings among China’s rising middle class is going to change our view on the country’s macro economics, and how it works out on an individual level.
The reform plans from president Xi Jinping asks for a notable reshuffle of power relations in China, notably from the powerful local governments to the central government. It takes “brute force”, says economist Arthur Kroeber in Bloomberg to reorganize local finances.
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 latest fiscal crisis in the United States worried China, but there is very little that can be done by China, says economic analyst Arthur Kroeber in the News Oberver. Although there is clear resentment against a world following rules set by the US, China also profits from it, he adds.