WSJ’s Wei Gu discusses the prospects of the Shanghai Free Trade Zone with China Economist Ting Lu of Meryll Lynch. Although China’s government published the so-called negative list the day after its inauguration, it means less restrictions. SFTZ will be a testing ground, and real expansion is only expected in three years time.
Category Archives: finance
The main reason for China’s government to start the Shanghai Free Trade Zone last weekend was to increase competitiveness in the service sector, where in telecom and finance state-owned giants have been dominating up to now, tells Shanghai-based business analyst Shaun Rein on Radio Australia.
Services are replacing manufacturers as preferred investors in China, tells business analyst Shaun Rein in VOA as Shanghai is opening its free trade zone. That could be a trial balloon for the next five to ten years, before moving on, he expects.
Can Detroit learn from the way China pulled its economy out of misery, wonders lecturer Michael Justin Lee in ChinaUSFocus. “There actually was no great secret to the success of China’s SEZs. The government butts out to incent private capital in. That’s pretty much it.”
The party is over for Chinese banks, shadow banking expert +Sara Hsu concluded (together with co-author Andrew Collier) at the EastAsiaForum.com. Regulator can no longer turn a blind eye, as loans put local governments and private lenders into trouble.
Shadow banking covers about 25% of China’s financial industry, and poses a threat to the country’s future. Shadow banking expert Sara Hsu fears that these riskier ways of getting finance, shadow banking might collapse and wipe away the savings of many Chinese, if the government does not step in, she tells at the China Weekly Hangout.
The China Speakers Bureau is happy to include Sara Hsu, offering our financial clients a unique insight in this unique feature. She will soon participate in one of our China Weekly Hangouts to discuss shadow banking in China.
The magic dance around China’s annual GDP has become a different ball game, tells economist Arthur Kroeber in the China Money Podcast. And linking the country’s economic growth to the growth of jobs is nonsense anyway.
Export has for long been the driving force behind China’s GDP growth, but has it also contributed to a higher standard of living. Financial expert Michael Justin Lee challenges one of the common misunderstandings in China’s economic development, written for China Focus.
The banking industry is one of the sectors where disruption by the internet will be huge, writes angel investor Marc van der Chijs in his weblog. “Most major banks are still living in the 20th century.” He joined SinoLending board, a firm focusing on making getting loans easier.