Super investor Jim Rogers discusses the monetarian measures by Western central banks, while in China their colleagues have not lowered interest rates to fight the effects of the coronavirus. In Europe and the US they have not even started to fight the virus and we have to see how that works out, he tells at CGTN.
Private companies have a hard time getting bank loans, says economist Arthur Kroeber to Barron’s. But that is nothing new, he adds, the problem is that state-owned companies get loans too easy. That division is more important than the level of China’s debts, he adds. “Too much attention has been paid to the debt problem.”
The trade war damages both US and China’s economy, and global trade. Financial and political analyst Victor Shih, Ho Miu Lam Chair associate professor of political economy at UC San Diego and author of the forthcoming “Economic Shocks and Authoritarian Stability,” gives an overview of the damage in the Los Angeles Times.
China promised to open up its financial industry under the pressure of the ongoing trade war. But the industry was not right away impressed: they had heard this song often enough. Financial analyst Sara Hsu looks at how China is keeping its promises this time and says the country is still underdelivering, she writes in China Focus.
After a lengthy crackdown on shadow banking, this risky financial tool seems to be back in grace as China’s economy is slowing down. It is the pragmatic way China’s financial authorities deal with the economy, financial analyst Sara Hsu says. Shadow banking will be allowed, as long as it works, she writes in China Focus.
China is pondering to throw in a currency deal in its trade negotiations with the US, maintaining the value of the Renminbi, to pacify the doves in the White House. But that might be a wrong idea, say analysts like economist Arthur Kroeber, who point at Japan. Japan agreed to a currency deal in 1985 as has paid for it dearly, writes the South China Morning Post.
China’s bad loans are increasing, but the country’s financial authorities have been trying to crack down on this source of financial stability. How are those efforts faring now China is suffering from a relative drop in economic growth. Financial analyst Sara Hsu discusses the dilemma’s the authorities are facing especially now the trade war is ongoing.