The government has been pulling in bad loans, rather than letting companies face bankruptcy and letting the markets do the job. For China’s leaders stability is key, says Beida accounting professor Paul Gillis to Reuters.
Category Archives: investments
Bike hailing services got another round of funding this week in hundreds of million US dollars, but Beijing-based observers like Beida accounting professor Paul Gillis just do not see how those companies, involved in a giant competitive war, will ever pay back those loans, he tells QZ.
At the end of 2016 a sharp decline in outbound investments by China became clear as financial restrictions kicked in. Business analyst Shaun Rein expects the curtailing measures to last for at least six months into 2017, he tells the South China Morning Post.
China´s powerful families use so-called “bag men” to deal with their wealth. The disappeared billionaire Xiao Jianhua was such a bag man, according to China rich list producer Rupert Hoogewerf, including the family or president Xi Jinping to the Financial Times. Finding information on Xiao had been tough.
While analysts watch a potential trade shoot-out between the US and China, US president Trump might help China in other ways, for example helping them compete with Mexico, says Peking University professor Jeffrey Towson in the China Daily. Mexico has been winning from China in producing cars and autoparts, and abolishing NAFTA might change that.
Some concern emerged in Canada when an investment company Leadon Investment Inc had invested US$1 billion in local hotels. Getting to know who is behind those investment vehicles with a China background might be very hard to discover, says financial analyst Victor Shih to the Vancouver Sun.
Asahi is selling its minority stake in Tsingtao beer as the beer market in China is not giving it the gain it expected since it entered in 2009, says business analyst Shaun Rein to Bloomberg. “Tsingtao is in trouble,” said Rein. “It’s not premium enough, and it’s not cheap enough.”
While health care insurance has been high on China´s political agenda, the impact of private insurance is still very limited, writes Peking University professor Jeffrey Towson in the Asia Nikkei. Before turning to possible solution, he paints the grim picture.
The decision to sell a controlling stake of McDonald´s to private investors in the Carlyle Group, Citic Capital and Citic Group triggered off mixed reactions among analysts. Retail analyst Ben Cavender says the new investors can help to refurbish and expand the chain. Peking University business professor Jeffrey Towson sees a different management style, that makes competitor KFC run for its money. But business analyst Shaun Rein sees to end to the inevitable decline of McDonald´s.