Last year China promised it would not bail out its unruly financial sector. It still did. It promised swiping financial reforms. They did not materialize. Financial analyst Sara Hsu discusses the current state of China´s finance and what the government should do. Asking questions are Chao Pan and Fons Tuinstra.
Lower barriers to capital accounts, make it easier to trade in China´s currency, the Renminbi. Offshore trading centers expand, at the country builds up it financial leverage. Financial analyst Sara Hsu has a look at the expanding RMB clearance banks in the Diplomat. After Hong Kong, London, Frankfurt and Seoul, Paris and Luxembourg followed.
China´s Yuan has been falling sharply against the US Dollar in the past week, and much debate emerged on what might be the politics behind this. It only means China´s central bank PBOC is doing its job as a circuit breaker by letter hot money out of the economy, writes financial analyst Michael Justin Lee in the ChinaUSFocus.
With large companies like Alibaba and Baidu entering the financial industry, P2P lending has become a major issue in China, as common bank loans are hard to get. But there are huge risks involved, writes financial analyst Sara Hsu in The Diplomat, as the new ventures lack essential transparency.