Category Archives: finance

The Belt and Road initiative: all roads lead to China (updated)

One of the major global initiatives by China was the massive Belt and Road Initiative, reviving the old silk roads. In May 2017 a major international conference showed what our experts were already expecting: now all roads lead to China. Even countries who suffered from difficult relations with China, including both Koreas, appeared in Beijing.Larger than the former Marshall Plan after the Second World War, OBOR is going to redefine global trade.

Mr. Trump cannot outsmart history – Jim Rogers

In the trade war between China and the US, president Trump tries to outsmart history, says investor Jim Rogers, author of A Gift to My Children: A Father’s Lessons for…

Renminbi: not yet close to US dollar as world currency – Wang Haiyan

China’s Renminbi is not coming close to the US dollar as the world’s reserve currency, says business analyst Wang Haiyan to Money Talks. Even though more trade is done in the Chinese currency, the US dollar is still dominant. China cannot expect export to save its economy but relies on domestic consumption. But that transition is not going overnight, Wang adds.

Why I sold my US stocks for Chinese equity – Jim Rogers

Renowned investor Jim Rogers sold his US stocks and changed them for Chinese equities, he told at Yicai Global. For him, the Belt and Road initiative fits into his optimistic view on China’ economy, he adds.

Foreign companies not ready to leave China – Arthur Kroeber

One of the purposes of Trump’s trade war is convincing US companies to leave China. But they are not yet ready to move, says economist Arthur Kroeber, author of China’s Economy: What Everyone Needs to Know®, in the Channel News Asia. And when they move, they might before countries like Vietnam over the US, he adds.

Trade war will lead to higher consumer prices – Victor Shih

Tariffs in the ongoing trade war are taxes, so it is unavoidable consumer prices will go up, says financial analyst Victor Shih, author of Factions and Finance in China: Elite Conflict and Inflation, at The Point. Some increases might be taken by the distributors, and consumers are not yet worried because the US economy is now doing very well, Shih says. But that could change in the months to come when the effects of the trade war kick in.

Currency devaluation: a tricky way to fight the trade war – Victor Shih

Devaluating the Chinese Yuan can be an attractive, but also dangerous way for China to deal with the effect of the ongoing trade war, says financial and political analyst Victor Shih, author of Factions and Finance in China: Elite Conflict and Inflation to Reuters. ” It is likely that corruption is returning, which will undermine Chinese capital control measures.”

In China, small print can kill you – Paul Gillis

Registering offshore, through so-called VIE’s or variable interest entities, is more popular than ever for Chinese companies, even though the Chinese government tries to stop this circumventing trick. Tencent Music Entertainment was the last one to use it for its IPO and get away with it because investors seldom read the disclosure, says Paul Gillis, accounting professor at the Peking University, at the Nikkei Asian Review. And for good reasons.

How the US is becoming nastier in the US-China trade war – Arthur Kroeber

Those who hope worst is over in the trade war the US is conducting against China might be very wrong, wrote economist Arthur Kroeber, author of China’s Economy: What Everyone Needs to Know®, last week, according to Goldseek.com.

Promising investment prospects in North Korea – Jim Rogers

For investors the prospects for North-Korea are similar to China in 1978, says superinvestor Jim Rogers, author of Street Smarts: Adventures on the Road and in the Markets,  according to the Korean medium Hankyoreh. “If North Korea introduces reforms and openness, it will achieve rapid economic growth in the double digits or higher.”