Renminbi retreat set to revive capital outflows pressure – Financial Times

15/08/2019 Renminbi retreat set to revive capital outflows pressure | Financial Times Chinese capital controls (See my comments…) Renminbi retreat set to revive capital outflows pressure Breach of key threshold sees currency and its regulator face challenges on many fronts Don Weinland in Beijing 9 HOURS AGO The renminbi’s fall through the closely watched and […]

China’s Currency Weakens in a Potential Challenge to Trump

By Alexandra Stevenson Aug. 4, 201 BEIJING — China’s currency weakened past the psychologically important point of 7 to the American dollar for the first time in more than a decade, a move that reflects the growing severity of the trade war with the United States and that could indicate Beijing’s growing desire to find ways to retaliate […]

China’s Economic Growth Hits 27-Year Low as Trade War Stings

New York Times (See my quote below) July 15, 2019 A shopping mall in Beijing. Retail sales and spending on infrastructure offered bright spots in data that otherwise showed slumping growth.CreditLam Yik Fei for The New York Times A shopping mall in Beijing. Retail sales and spending on infrastructure offered bright spots in data that […]

The Trade War – Chinese Response

The trade war – the Chinese response Andrew Collier | Jun 07, 2019 Executive Summary We analyze the response of China to the trade war in four buckets: politics, macro-economy, global supply chains, and technology. Of the four, China’s technological development and global supply chains are likely to suffer the most. Xi’s political power is […]

Ant Financial’s Aggressive Strategy

Microsoft Word – Ant’s Aggressive Strategy.docx “Ant Financial has got just enough bullets to cause a small–scale financial crisis.” Economist with a State Owned Bank. l Growing Market Share. Ant Financial has quickly taken market share from traditional banks, trust companies and other financial firms. Eventually, the regulators may reduce Ant’s consumer lending business to […]

No QE for China

February 19, 2019 Executive Summary There is a widespread expectation among western investors that China will enact quantitative easing to counter the effects of the trade war and the slowing economy. This is highly unlikely. Although there is substantial data indicating signiDcant pain in the economy, including defaulting SMEs, unemployment, and general declining economic activity, […]

China’s Winners and Losers

Summary China has instituted several targeted stimulus measures designed to improve GDP growth and provide capital for small businesses, the country’s largest employment sector. These measures, however, are likely to be inadequate compared with the decline in capital due to the restrictions imposed on shadow lending. The results are likely to be: Difficulty maintaining land […]

China’s Broken Infrastructure Model

The widening fiscal deficit will restrict further stimulus efforts Summary China’s economic growth in the near term will depend on further investment in infrastructure, which has been the main driver in the past. The switch to consumption will take time. Our analysis suggests there are inadequate fiscal resources to continue to generate significant growth through […]

China bank survey: The return of shadow banking

China bank survey: The return of shadow banking Andrew Collier | Conclusion Beijing is returning to stimulus to prevent a decline of GDP at a time of the threat from the Trade War. We see this growth in lending, both on and off balance sheet, in our October bank survey. One policy that has been […]