Category Archives: finance

Foreign investment law not the feared VIE-killer – Mark Schaub

For years the business community feared China’s central government would kill the so-called VIE’s (variable-interest entity). The tool to circumvent the country’s strict ownership regulations was never endorsed by the government but has also never been in serious trouble, tells China veteran and lawyer Mark Schaub to Bloomberg. The ban even did not show up in the draft foreign investment law, last week.

China does not need to kill the VIE’s anymore – Paul Gillis

The new foreign investment law is no longer mentioning the ban on VIE’s like an earlier edition did in 2015. The tool to circumvent Chinese regulations by channeling investments through…

Why a currency deal might be bad for China – Arthur Kroeber

China is pondering to throw in a currency deal in its trade negotiations with the US, maintaining the value of the Renminbi, to pacify the doves in the White House. But that might be a wrong idea, say analysts like economist Arthur Kroeber, who point at Japan. Japan agreed to a currency deal in 1985 as has paid for it dearly, writes the South China Morning Post.

China rich list loses 213 billionaires in 2018 – Rupert Hoogewerf

Global gloom has hit billionaires worldwide, but especially in China, as 213 lost their position at the China Hurun rich list. Globally 430 dropped off the global edition. Poor performance of…

P2P boom has ended and will consolidate more – Sara Hsu

P2P lending used to be one of the darlings of the financial industry in China, but those days are over, describes financial analyst Sara Hsu in a thorough overview of the developments at SupChina. More consolidation of the industry is expected, she adds.

Slowdown and reducing debts go hand in hand – Jim Rogers

China’s economy is going through a reduced growth and, says investor Jim Rogers, that might be an excellent idea as the country has to bring back its debts, he says on his weblog. ‘China’s economy is slowing, fortunately for China and fortunately for the world.”

How China manages its growing bad loans – Sara Hsu

China’s bad loans are increasing, but the country’s financial authorities have been trying to crack down on this source of financial stability. How are those efforts faring now China is suffering from a relative drop in economic growth. Financial analyst Sara Hsu discusses the dilemma’s the authorities are facing especially now the trade war is ongoing.

How Trump’s trade war is backfiring – Sara Hsu

Trump’s trade war against China is backfiring, says financial analyst Sara Hsu at the China Focus. While ideologically the trade war makes sense, US consumers and companies pay a high price, she says.

How Tencent became a winner with WeChat – Matthew Brennan

China’s internet giant Tencent has become a winner, first by copying US competitors, but now it has become their inspirator, says Tencent-watcher Matthew Brennan to Leadersleague. “WeChat does not monetize data, but it is a growth lever for other businesses in the Tencent group. It’s a bit like iOS or Android in that regard,” says Brennan.

China regulates, not bans, blockchain – Mark Schaub

China banned in September 2017 ICOs (Initial Coins Offerings) after some high-profile cases of fraud but certainly not block all blockchain activities. Lawyer Mark Schaub looks at the China Law Insight at how the government tries to regulate blockchain, one year after the initial ICO ban.