Notes from China Beijing Sees New Problems Summary We just conducted a week of interviews in Beijing and nearby Jinan, Capital of Shandong Province. A few thoughts on these subjects: l Inflation. l Consumer Debt. l Growing Receivables. l New Private Banks l Rising Power of Reformer Wang Yang l The Mantra of Private Public Partnerships Inflation in Beijing’s Sites […]
Andrew Collier, Orient Capital Research China has promised a new round of financial opening to foreign firms, its biggest overseas incursion since the country’s entry into the World Trade Organization fifteen years ago. But the reality is likely to be far less than expectations. First, the history of western financial institutions in China is […]
China Opens Up Financial System Daybreak Asia November 13th, 2017, 9:04 AM GMT+0800 Andrew Collier, managing director of Orient Capital Research, discusses China opening up its financial system and where he sees opportunity. He speaks on “Bloomberg Daybreak: Asia.” (Source: Bloomberg) https://www.bloomberg.com/news/videos/2017-11-13/china-opens-up-financial-system-video
Mobile Payment is the key Summary Domestic Competition. Tight competition for payments within China is pushing Alibaba and Tencent to explore overseas expansion. Financial Services. Both companies currently rely on Chinese tourists and business travelers. In future, the easiest entry access is via local joint ventures offering financial services such as micro-loans, which they are […]
Fiscal Reality Limits his Power over the Economy Summary Most analysts believe Xi Jinping is likely to increase his power following the Party Congress on October 18 by strengthening his control over the Party’s Standing Committee. This, in turn, could give him the political freedom to institute economic reforms, including restructuring of state firms, and […]
Summary Starting with a registered capital of Rmb10mn, HNA Group has grown its total assets to more than Rmb1trn. In just the past three years, the Group completed acquisitions valued at more than US$40bn. The most frequently asked question now is: where did HNA obtain its capital? Recent articles (see Financial Times, June 2, 2017) […]
Summary Bond Defaults in China SOEs are not protected In 2016, there were defaults of 79 Chinese bonds for a total value of Rmb40.3 billion. This was an increase of 243% YoY. We draw several conclusions from default data on future economic policy and how the leadership will handle rising debt: 1) The MostDefaults were […]
July 12, 2017 — 10:39 AM HKT Andrew Collier, Managing Director, Orient Capital Research spoke with Doug Krizner and Juliette Saly on the on PBOC’s official newspaper saying China should expand the yuan’s trading band. He sees a lot of downward pressure on the yuan. He also looked at the flurry of M&A activity seen […]
http://www.npr.org/sections/parallels/2017/06/30/534967496/how-hong-kongs-banks-turned-chinese And that means a sea change is underway for the job prospects of young Hong Kongers. “It used to be that you got out of college in Hong Kong, you were an invaluable resource because you had some sort of Mandarin skills, you spoke English and you were trained in finance, and you had […]