Conversation

10.06.17

Is China the Future of Bitcoin, or Its Past?

Andrew Collier, Isaac Mao & more
China often dominates the market for Bitcoin, a virtual currency managed by a decentralized network of computers: at points over the last few years, China may have accounted for more than 75 percent of Bitcoin trading. Energy subsidies there make it...

Books

08.21.17

China’s Banking Transformation

James Stent
In this timely and provocative book, James Stent, a banker with decades of experience in Asian banking and fluency in Chinese language, explains how Chinese banks work, analyzes their strengths and weaknesses, and sets forth the challenges they face in a slowing economy. Without minimizing the real issues Chinese banks face, China’s Banking Transformation challenges negative media accounts and reports of “China bears.” Based on his 13 years of service on the boards of China Minsheng Bank, a privately owned listed bank, and China Everbright Bank, a state-controlled listed bank, the author brings the informed view of an insider to the reality of Chinese banking.China’s Banking Transformation demonstrates that Chinese banks have transformed into modern, well-run commercial banks, playing a vital role supporting the country’s extraordinary economic growth. Acknowledging that China’s banks are different from Western banks, the author explains that they are hybrid banks, borrowing extensively from Western models, but at the same time operating within a traditional Chinese cultural framework and in line with China’s governance model.From his personal experience working at board level, Stent describes the governance and management of China’s banks, including the role of the Communist Party. He sees China’s banks as embedded in ancient concepts of how government and society work in China, and also as actors within a market socialist political economy. The Chinese banking system today bears similarities with banking in Northeast Asian “developmental states” of recent past, and also pre-1949 Chinese banking.As the first account of Chinese banking by a Westerner who has worked in China’s banks, China’s Banking Transformation should be read by anyone interested in the political economy of contemporary China, in Asian development issues, and in banking issues generally. The book dispels misconceptions and provides insight into the financial aspects of China’s economic growth story. —Oxford University Press{chop}

Big China Companies Targeted over ‘Systemic Risk’

Financial Times
China’s bank regulator ordered domestic lenders to check the “systemic risk” presented by “some large enterprises” involved in overseas buying sprees, sending stock prices of some of the country’s most acquisitive private-sector companies sharply...

Caixin Media

06.05.17

China to Boost Checks on Overseas Spending

China is stepping up supervision of the use of bank cards overseas, a move the foreign-exchange regulator says is needed to fight money laundering, terrorist financing, and tax evasion.Starting September 1, banks will be required to report on a...

Chinese Investors Who Borrowed Are Hit Hard by Market Turn

DAVID BARBOZA
New York Times
Millions of ordinary investors like Mr. Gong, who piled into an ever-soaring Chinese stock market over the last year, are bracing for a roller-coaster ride.

U.S. About-Face on AIIB Would be Welcomed

China Daily
US leaders have for years said Asia-Pacific nations do not have to choose between China and the US.

U.S. Urges Allies to Think Twice Before Joining China-led Bank

Matthias Sobolewski and Jason Lange
Reuters
The move by U.S. allies to participate in Beijing's flagship economic outreach a diplomatic blow to Washington. ...

Stiffer Bank-Technology Rules Loom in China

Eva Dou and Gillian Wong
Wall Street Journal
Beijing presses for secure and controllable systems; suppliers fear intrusive measures. 

US Anger at Britain Joining Chinese-led Investment Bank AIIB

Nicholas Watt, Paul Lewis and Tania...
Guardian
U.S. statement says of U.K. membership that it is ‘worried about a trend of constant accommodation’ of China. 

China Approves Pilot Plan to Set Up 3-5 Private Banks

Nick Macfie
Reuters
In a step to boost financial support for cash-starved smaller firms, The China Banking Regulatory Commission (CBRC) has announced its plan to maintain “prudential regulatory standards” in approving private banks. 

Caixin Media

11.12.12

Weighing Risks Amid a Wealth Management Boom

Is China’s wealth management business a booming profit volcano for investors, or just another smoke-and-mirrors pyramid scheme?It’s a question dividing the nation’s bankers and banking regulators as investors of all kinds pour cash into bank-...