China’s Financial Opening Isn't Quite What It Seems

Andrew Polk
Bloomberg
Although trade tensions between the U.S. and China show no signs of abating, there are some reasons for cautious optimism.

China Levies Record $870 Million Fine for Stock Manipulation

Bloomberg News
Bloomberg
China slapped a logistics company with fines totaling 5.5 billion yuan ($870 million) for manipulating the stock market, the biggest ever punishment for such an infringement.

China just reminded the United States that Beijing is its banker

CNBC
U.S. bonds sold off on Wednesday — and that may have been the point.

Chinese Shadow Banking Has Slowed — but That's Not as Good as It Seems

Huileng Tan
CNBC
China is on a drive to reduce its reliance on debt, a habit that some experts warn could lead to a global financial crisis.

In China, Trading Begins on WeChat

Lianting Tu and Carrie Hong
Bloomberg
Regulators elsewhere may be clamping down on the financial industry’s use of private messaging apps, but in the world’s second-largest economy the practice is flourishing.

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...

China Steps up Battle Against Runaway Property Prices

Xinning Liu and Gabriel Wildau
Financial Times
Chinese banking regulators have told lenders to crack down on the use of consumer loans to finance home purchases, the latest effort to cool down the overheated property market and rein in financial risk.

As China Piles on Debt, Consumers Seek a Piece of the Action

Keith Bradsher and Ailin Tang
New York Times
Chinese central bank data shows that consumer loans have grown almost 50 percent since the start of last year, and the International Monetary Fund said it expected China’s household debt as a percentage of its economic output to double by 2022...

S&P Downgrades China, Says Rising Debt Is Stoking Economic, Financial Risks

Elias Glenn
Reuters
S&P’s one-notch downgrade to A+ from AA- comes as Beijing grapples with the challenges of containing financial risks stemming from years of credit-fueled stimulus to meet ambitious government economic growth targets.

Trump's Threats Loom as China Weighs Opening to Wall Street, Tesla

Bloomberg News
Bloomberg
Coincidence or not, China appears set to ease restrictions on foreign automakers and banks amid sustained pressure from U.S. President Donald Trump to open up its economy.

China Plans First Dollar-Denominated Bond Sale in a Decade

Gabriel Wildau and Jennifer Hughes
Financial Times
China is planning to sell dollar-denominated bonds for the first time in a decade, as it seeks to take advantage of investor appetite for Chinese credit amid the country’s unexpectedly strong economic growth.

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}

China to Turn All Centrally Owned Giants Into Joint-Stock Firms by 2017

Reuters
China will turn all big companies owned by the central government into limited liability firms or joint-stock firms by the end of 2017, as Beijing looks to make its state-owned giants more nimble as part of broader reforms of the capital markets.

China Shares Get MSCI Nod in Landmark Moment for Beijing

Dion Rabouin, Michelle Price
Reuters
U.S. index provider MSCI said on Wednesday Hong Kong time it would add a selection of China's so-called "A" shares to its Emerging Markets Index .MSCIEF after having rejected them for three years running...

Some Global Investors See Fresh Worries in an Old Problem: China

Michael Schuman
New York Times
While investors have been preoccupied with President Trump and chaos in Washington, nerve-rattling elections in Europe and the uncertainty created by Federal Reserve policy and Britain’s decision to leave the European Union, a once-familiar — and...

Trump and Xi’s First Meeting

Paul Haenle & Ashley J. Tellis from Carnegie-Tsinghua Center for Global Policy
All eyes are on Mar-a-Lago this week, where Chinese President Xi Jinping and U.S. President Donald Trump will meet for the first time. The summit is expected to be heavy on symbolism rather than on concrete deliverables, but the ability to set a...

Corporate China Hits Global Debt Market Milestone

Jennifer Hughes and Don Weinland
Financial Times
Banks and other corporate borrowers quietly encouraged to raise money offshore

Disappearance of Chinese Billionaire Alarms Financial Sector

Yifan Xie and Josh Chin
Wall Street Journal
Xiao Jianhua is one of several high-profile Chinese businessmen to go missing since China’s 2015 stock-market crash

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...

China Shares Hit Seven-Month High; World Yields Keep Falling

Marc Jones
Reuters
Chinese stocks helped offset news that Japan’s economic growth had ground to a halt.

Caixin Media

07.27.16

New Territory For Financial Oversight Reform

An intense battle for control of China’s largest, publicly traded developer China Vanke Co. has exposed flaws in the nation’s financial supervision system that demand urgent attention.Vanke management and Baoneng Group, a property and insurance...

China and South Korea Sound Notes of Caution

Jane Perlez and Chris Buckley
New York Times
The People’s Daily said the British vote could indirectly unsettle China’s economy in the short term but was unlikely to leave deep, lasting damage.

Predictions For Post-Brexit China-UK Business

Klaus E. Meyer
Forbes
We have to look at the motives of Chinese investors in Europe.

China, Hong Kong Shares Fall as Global Investors Flee Risky Assets

Samuel Shen and Nathaniel Taplin
Reuters
Investors fretted ahead of this week's central bank meetings and Britain's referendum on whether to remain in the EU...

The China Intervention Trade Is Back as State Funds Battle Bears

Bloomberg
The stock market is a battleground for bearish investors and state-directed funds determined to spark a rally.

Sinica Podcast

01.29.16

The China Meltdown

Jeremy Goldkorn, Kaiser Kuo & more from Sinica Podcast
[—Editors note: this podcast was recorded on January 18, 2016]With equity markets in free fall, housing prices skipping downwards, foreign reserves plummeting, and industrial production on a road trip back to the last decade, it’s no surprise...

One Thing China Got Right

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

Caixin Media

07.20.15

How Beijing Intervened to Save China’s Stocks

Top executives from 21 securities firms spent the morning of Saturday July 4 pinned to government office chairs while the future of China’s stock markets hung in the balance.They’d been summoned on a day off to the Beijing office of the China...

Viewpoint

12.11.14

Here Is Xi’s China: Get Used To It

Arthur R. Kroeber from China Economic Quarterly
The prevailing mood among China-watchers in 2014 was one of anxiety and skepticism. The year began in the shadow of Chinese assertiveness in the East and South China Seas. Economic concerns quickly took over: by February the property market seemed...

Caixin Media

10.21.14

Revision of Securities Law Is Chance to Liberalize Market

China's securities law is to undergo a comprehensive revision almost a decade after the last major overhaul. Public consultation is due to start in the first half of next year, following recent comments from officials, scholars, and market...

China Housing Bubble Won’t Impact Global Financial Markets, Says Treasury Secretary Lew

Kenneth Rapoza
Forbes
The Treasury Secretary said China’s housing market was not connected to the rest of the world, and was generally not over leveraged like it was in the U.S. and Europe.

Finally, One Analyst Believes China Is Improving

Chris Wright
Forbes
In recent years, an upbeat note on the Chinese economy has been hard to find. Step forward Nomura, which on June 3 raised its GDP forecast for the second quarter from 7.1% to 7.4% and its full year forecast from 7.4% to 7.5%.

Caixin Media

06.18.13

Will Bond Market Tidying Trigger Clean Sweep?

China’s financial regulators are rewriting rules for the interbank bond market after criminal investigations early this year led to the arrests of several well-known bond traders and exposed serious flaws in the market’s supervision system.The...

Reports

01.26.06

Ending Financial Repression in China

James A. Dorn
Cato Institute
The consequences of China’s financial repression are easy to see. By suppressing two key macroeconomic prices—the interest rate and the exchange rate—and by failing to privatize financial markets and allow capital freedom, China’s leaders have...