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...

Africa Needs Infrastructure, China Wants to Build It. So What’s the Problem?

Eric Olander, Cobus van Staden & more
Every week seemingly brings a new announcement of a Chinese-financed mega project somewhere in Africa. Last week’s announcement of a $5.8 billion power station in Nigeria that will be financed and built by Chinese state-owned companies is typical of...

China’s Wanda Signals Retreat on Debt-Fueled Acquisition Binge

Sui-Lee Wee
New York Times
The Chinese conglomerate Dalian Wanda Group has epitomized the country’s high-flying deal makers, building a vast global empire of theme parks, real estate developments, and movie theaters across the United States.

Depth of Field

06.29.17

Love, Robots, and Fireworks

Ye Ming, Yan Cong & more from Yuanjin Photo
Included in this Depth of Field column are stories of love, community, remembrance, and the future, told through the discerning eyes of some of China’s best photojournalists. Among them, the lives of African migrants in Guangzhou, seven years inside...

China Has a Huge Debt Problem. How Bad Is It?

CNN
Credit rating agency Moody’s downgraded China this week, warning that the country’s financial health is suffering from rising debt and slowing economic growth. It’s the first time the agency has cut China’s rating in nearly three decades.

China’s Downgrade Could Lead to a Mountain of Debt

Bloomberg
The downgrade of China’s debt by Moody’s Investors Service may push Chinese companies to borrow even more money from domestic banks as overseas debt becomes more expensive, increasing risks for the nation’s finance industry.

Books

05.02.17

China’s Mobile Economy

Winston Ma
China’s Mobile Economy: Opportunities in the Largest and Fastest Information Consumption Boom is a cutting-edge text that spotlights the digital transformation in China. Organized into three major areas of the digital economy within China, this ground-breaking book explores the surge in e-commerce of consumer goods, the way in which multi-screen and mobile Internet use has increased in popularity, and the cultural emphasis on the mobile Internet as a source of lifestyle- and entertainment-based content. Targeted at the global business community, this lucid and engaging text guides business leaders, investors, investment banking professionals, corporate advisors, and consultants in grasping the challenges and opportunities created by China’s emerging mobile economy, and its debut on the global stage.The year of 2014-15 marks the most important inflection point in the history of the Internet in China. Almost overnight, the world’s largest digitally-connected middle class went both mobile and multi-screen (smart phone, tablets, laptops, and more), with huge implications for how consumers behave and what companies need to do to successfully compete. As next-generation mobile devices and services take off, China’s strength in this arena will transform it from a global “trend follower” to a “trend setter.”Understand what the digital transformation in China is, and impact on global capital markets, foreign investors, consumer companies, and the global economy as a whole.Explore the e-commerce consumption boom in the context of the Chinese market.Understand the implications of the multi-screen age and mobile Internet for China’s consumersSee how mobile Internet use, its focus on lifestyle and entertainment is aligned with today’s Chinese culture.Learn about the mobile entertainment habits of China’s millennial generation and the corresponding new advertisement approaches.The development of China’s mobile economy is one of the most important trends that will reshape the future of business, technology, and society both in China and the world. China's Mobile Economy introduces you to the digital transformation in China, and explains how this transformation has the potential to transform both China and the global consumer landscape. —John Wiley & Sons, Inc.{chop}

China Is Warning Lotte Group against Letting a Korean Golf Course Become a Missile Defense Site

Josh Horwitz
Quartz
China’s has a new target amid its ongoing economic retaliation against South Korea—the country’s fifth-biggest conglomerate

Caixin Media

10.24.16

The Yuan’s Internationalization is Just Beginning

The official acceptance of the yuan (or renminbi) into the International Monetary Fund’s elite currency club on October 1 marked a milestone in the Chinese government’s campaign to boost the yuan’s international appeal.Inclusion of the yuan in the...

Marriage Falls in China, Transforming Finances and Families

Amie Tsang and Zhang Tiantian
New York Times
The decline in marriages means a decline in the kind of spending China needs to drive economic growth.

China Opens Door to Foreign Private-Equity Funds

Shen Hong
Wall Street Journal
Regulator says funds must raise money from domestic investors, invest in Chinese capital markets.

China Party Mouthpiece Echoes Soros' Debt Fears

Tom Mitchell
Financial Times
‘Authoritative’ source warns party paper of ‘deadly’ risk to economy.

The New Qualification for China’s Tech Elite: Goldman Sachs

Wei Gu
Wall Street Journal
Alibaba affiliate Ant Financial set to hire banker Douglas Feagin, latest in a string of Goldman alumni at Chinese Internet firms.

China Banks Face Credit Risks from Ties to Wealth Management Products

Leslie Shaffer
CNBC
While WMPs offer high interest rates, it isn't always clear what assets the funds are buying to finance those payouts...

Caixin Media

02.24.16

Regulators Leave Wealth Management Industry Unplugged

Financial market supervisors admit that gaping holes pockmark the regulatory fences they’ve built in recent years to control the wealth management industry and protect its investors.By occasionally introducing new rules and regulations, supervisors...

China's Nearly 700 Million Internet Users Are Hot For Online Finance

Melanie Lee
Forbes
According to data from the China Internet Network Center, in 2015, online trading in stocks and online payment were hot areas of growth.

Viewpoint

01.15.16

China’s New Development Bank Needs Better Human Rights Protections

Nicholas Bequelin
On January 16, the Board of Governors of the Asian Infrastructure Investment Bank (AIIB) will meet in Beijing to formally launch its operations.A symbol of China’s growing clout on the international scene, the AIIB attracted 57 founding members,...

Many in the West Fear Chinese ‘Aid’ to Africa. They’re Wrong. Here’s Why.

Axel Dreher, Andreas Fuchs, Brad Parks...
Washington Post
Western pundits have a narrative about China’s activities in Africa.

The New Asian Order

Evan A. Feigenbaum
Foreign Policy
And How the United States Fits In.

One Thing China Got Right

Peter Coy
Bloomberg
Stocks plunged, monetary policy wavered, but Beijing finally fixed the "fixing."...

Caixin Media

08.03.15

Villain or Hero for Stock Market Saga?

An obscure equities-trading finance agency that brokers often slighted in favor of bank loans has suddenly taken center stage in the drama playing out in the stock market.But reviews are mixed over whether the four-year-old, quasi-governmental China...

Conversation

07.29.15

Can Xi Jinping Turn China’s Economy Around?

Arthur R. Kroeber, George Chen & more
On Monday, the Shanghai Composite Index fell 8.5 percent, erasing all of the gains it had made in an extraordinary run-up this year. The drop was the second 8.5 percent drop in recent weeks. The first such drop (the occasion for the Conversation...

China’s Shares Tumble Again

Neil Gough
New York Times
Artists, essayists, lawyers, bloggers and others deemed to be online troublemakers have been hauled into police stations and investigated or imprisoned for “picking quarrels and provoking trouble,” a charge that was once confined to physical...

Why are China’s Stock Markets so Volatile?

Josh Noble
Financial Times
Home to the world’s largest equity markets after the US, China is still extremely volatile with benchmark indices often swinging as much as 10 per cent in a matter of hours.

Techies Are Trying to Get Chinese Consumers to Rack Up Debt

Issie Lapowsky
Wired
In recent years, as the growth of the Chinese economy has slowed—thanks to declining demand for exports and new real estate projects—the government has been desperate to get its thrifty citizens to spend, spend, spend and drive economic growth from...

Sinica Podcast

05.04.15

The Furor and the Asian Infrastructure Investment Bank

Kaiser Kuo & Jeremy Goldkorn from Sinica Podcast
A total of 57 countries have now joined the Asian Infrastructure Investment Bank, China’s newly-launched competitor to the Asian Development Bank (AIIB) that has sparked a flurry of objections from the United States, even culminating in a failed...

New Asian Development Bank Seen As Sign Of China’s Growing Influence

Jim Zaroli
NPR
Obama worries the new bank will compete with the Western-led World Bank and the International Monetary Fund.

Which U.S. Companies Are Doing the Most R&D in China and India?

Vijay Govindarajan, Gunjan Bagla, and...
Harvard Business Review
Companies' quest to cut costs per engineer drives new entrants into using R&D from India and China...

The Dragon and the Gringo

The Economist
Economist
Time was when cash-strapped Latin American governments would turn to the IMF for the bitter medicine of its bail-outs. No longer. Over the past dozen years the supercycle of rising commodity prices has swelled the region’s coffers, while even the...

Environment

01.15.15

China-Latin America Summit ‘A Missed Opportunity’ on Low-Carbon Energy

The first major meeting of Chinese and Latin American leaders agreed closer cooperation on trade, investment, and industry, but is more likely to usher in deals on oil and gas rather than renewable energy, analysts said in response to a summit that...

Beijing Cannot Count on Easy Money to Sustain Its Economic Miracle

Ruchir Sharma
Financial Times
Just three months ago the main Chinese stock market was dormant. Since then it has surged 30 per cent and has started to show signs of the manic trading that normally does not appear until a bull market has been gathering steam for years.

San Gabriel Valley’s El Monte Getting a Boost from Chinese Investors

Frank Shyong
Los Angeles Times
Trucks loaded with construction materials park in front of a vacant lot in El Monte, where a homeless man slumbers on the sidewalk next to a mountain of rags and trash bags. Overhead, colorful flags whip in the breeze, advertising opportunities for...

China Tightening Curbs on Opaque Local Debt Spurs Market Tumble

Helen Sun and Judy Chen
Bloomberg
While the change caught traders off guard, authorities in the world’s second-largest economy are trying to rein in the use of lightly-regulated Local Government Finance Vehicles (LGFVs) as they promote the development of a more transparent municipal...

Hong Kong IPOs Become Losing Bets for Investors

Prudence Ho
Wall Street Journal
Hong Kong is one of the world’s top venues for initial public offerings, thanks to listings by Chinese companies over the years, but most of the IPOs have been a losing bet for investors, with the bulk of them lagging behind the market in recent...

Exclusive: China Ready to Cut Rates Again on Fears of Deflation — Sources

Kevin Yao
Reuters
Friday's surprise cut in rates, the first in more than two years, reflects a change of course by Beijing and the central bank, which had persisted with modest stimulus measures before finally deciding last week that a bold monetary policy step...

China’s New Old Financial Capital

Wall Street Journal
Hong Kong’s democracy protests are often said to be futile because the city is no longer China’s golden goose, protected from Beijing’s wrath by its economic importance. But Monday’s big news shows that things aren’t so simple: The opening of a “...

Few Signs of Construction at Yujiapu, China's Manhattan Replica

Ian Williams
NBC News
Complete with its own Rockefeller Center and Twin Towers, Yujiapu been billed as the world's largest financial center in the making. But this Manhattan still has a long way to go...

Shanghai-Hong Kong Link to Start in a Week as China Opens

Eduard Gismatullin and Kana Nishizawa
Bloomberg
The program allowing a net 23.5 billion yuan ($3.8 billion) of daily cross-border purchases will begin on November 17, regulators said in a joint statement today after weeks of investor speculation on the start date.

Why China Won Mexico’s High-Speed Rail Project

Clint Richards
Diplomat
Underlying Mexico’s decision to choose China, and what may have made it the only country able to meet to proposal deadline, was its decision to finance 85 percent of the project through the Export-Import Bank of China.

China Planning $16.3 Billion Fund for “New Silk Road”

Bloomberg
The fund, overseen by Chinese policy banks, will be used to build and expand railways, roads and pipelines in Chinese provinces that are part of the strategy to facilitate trade over land and shipping routes.

A Chance to Introduce Social and Environmental Protections

David Dollar, Hugh White, Oliver Rui,...
New York Times
Instead of opposing its creation, the U.S. should consider joining the bank as a means of guaranteeing that it matches world-class financing strength with world-class environmental practices.

Sinica Podcast

10.24.14

Chomping at the Bitcoin

Kaiser Kuo & Jeremy Goldkorn from Sinica Podcast
After a shocking expose of Jeremy Goldkorn’s criminal past, Sinica this week moves on to examine the Bitcoin phenomenon in China. Joined by Zennon Kapron, owner of the Shanghai consultancy Kapronasia and recent author of the book Chomping at the...

Picture Mixed Over Anti-Foreigner Bias of Chinese Regulator

Tom Mitchell
Financial Times
The alleged anti-foreigner bias of China’s National Development and Reform Commission, which enforces pricing provisions of the 2008 Anti Monopoly Law, has become an increasingly common complaint among multinational executives working in the country.

Zhang Lei has Lunch with the FT

Henny Sender
Financial Times
The billionaire Chinese financier was among the first to see the potential in homegrown internet companies. He talks about a career that began when he rented out comics at the age of seven.

The World Is Falling All Over Itself to Attract Chinese Tourists

Allison Jackson
Global Post
The number of tourist departures from China hit a whopping 97.3 million in 2013, up more than nine fold from 2000, according to the Germany-based China Outbound Tourism Research Institute

Media

05.13.14

Why Are There No Credit Scores in China?

Few would dispute that Chinese society suffers from a serious trust problem. After surviving crafty scams and shoddy products for years, Chinese people have become guarded with strangers and cautious in business dealings. Given all that, it would be...

China’s Alibaba Launches Crowdfunding-Like Service for Film Investment

Clifford Coonan
Hollywood Reporter
China's largest e-commerce company, Alibaba, launched a micro-finance service for movies...

China’s Party Platter of Overhauls

Alex Frangos
Wall Street Journal
There is hope that the Third Plenum, an important meeting in the life cycle of each five-year Party Congress, could bring real change in the spheres of real estate, banking, state-owned enterprises and currency. 

Infographics

10.23.13

To Save or Not to Save

from Sohu
China is known for saving money, and as the country has become wealthier, the household saving rate has increased. China’s personal saving rate has risen steadily since the mid-90s and now exceeds 50%, much higher than Germany’s 10%—considered high...

Reports

03.28.13

China’s Demography and its Implications

Il Houng Lee, Xu Qingjun, Murtaza Syed
Luo Xiaoyuan
International Monetary Fund (IMF)
In coming decades, China will undergo a notable demographic transformation, with its old-age dependency ratio doubling to 24 percent by 2030 and rising even more precipitously thereafter. This paper uses the permanent income hypothesis to reassess...

Caixin Media

10.26.12

Below-Belt Blows in Kungfu Restaurant Battle

The crestfallen former chairman of fast-food restaurant giant Kungfu Catering Management Co. Ltd. is awaiting a verdict after a trial on corporate embezzlement charges apparently instigated by his former business partner’s wife.If Cai Dabiao is...

Is the 2012 China Stimulus Some Kind of Unicorn?

Kate Mackenzie
Financial Times
Wang Tao at UBS thinks it is not really real: Well, that is what we call a bit of make-believe. Sure, the weak August data seem to have prompted more policy actions by various government agencies and we expect better&...

A Slowdown is Good for China and the World

Michael Pettis
Financial Times
What the rest of the world needs from China is not faster growth but more demand. Rebalancing will provide that, although the trade surplus will probably rise before it begins to decline. This will result in falling prices for hard commodities, and...

Caixin Media

06.29.12

Barclay’s Diamond Offers an Optimistic Vision

A calm, confident Robert Diamond discussed financial restructuring in Europe and economic options for the Chinese government during a June 14 interview—thirteen days before the British bank where he serves as CEO, Barclays Group, was fined for...

Reports

02.20.12

China’s Banking System: Issues for Congress

Michael F. Martin
Peony Lui
Congressional Research Service
China’s banking system has been gradually transformed from a centralized, government-owned, and government-controlled provider of loans into an increasingly competitive market in which different types of banks, including several U.S. banks, strive...

Reports

11.01.11

Internationalizing the Renminbi and China’s Financial Development Model

Robert N. McCauley
He Jianan
Council on Foreign Relations
Internationalization was a spontaneous outcome of the marketplace for the rest of the world’s major currencies, but China is breaking with history by making it official policy to steer the renminbi on a path toward reserve currency status. However,...

Reports

09.23.10

China’s Sovereign Wealth Fund: Developments and Policy Implications

Michael F. Martin
Peony Lui
Congressional Research Service
China’s ruling executive body, the State Council, established the China Investment Corporation (CIC), a sovereign wealth fund, in September 2007 to invest $200 billion of China’s then $1.4 trillion in foreign exchange reserves. As with other...

Sinica Podcast

07.02.10

Newsweek Bid, Renminbi Revaluation

Kaiser Kuo, Evan Osnos & more from Sinica Podcast
In a sudden move clearly intended to stave off criticism at the G20 meeting in Toronto, China loosened the yuan’s twenty-three-month-old peg to the American dollar earlier this month, allowing its currency to appreciate against the greenback. This...

Reports

12.11.09

China’s Economic Conditions

Wayne M. Morrison
Peony Lui
Congressional Research Service
Since the initiation of economic reforms and trade liberalization thirty years ago, China has been one of the world’s fastest-growing economies and has emerged as a major economic and trade power. The combination of large trade surpluses, FDI flows...

Reports

07.16.09

East Asia’s Foreign Exchange Rate Policies

Michael F. Martin
Peony Lui
Congressional Research Service
Financial authorities in East Asia have adopted a variety of foreign exchange rate policies, ranging from Hong Kong’s currency board system which links the Hong Kong dollar to the U.S. dollar, to the “independently floating” exchange rates of Japan...