China´s debts level has reached record heights, but the state will continue to guarantee sovereign debts, writes financial analyst Sara Hsu. And that support is also extended to state-owned companies like Cosco and ChemChina, despite downward pressures from the rating agencies, she argues in the Diplomat.Read More →
China has been losing massive foreign assets trying to manage its unruly financial markets. Financial analyst Victor Shih believes that for Beijing, alarm bells might to off when foreign reserves go under US$3 trillion, he tells at Bloomberg. And we might be at that point fast.Read More →
Things look not well for China´s economy, say a range of economists to Bloomberg. They include political and financial analyst Victor Shih, who fear the lack of income might force China into even larger debts, as it wants the economy to keep on humming.Read More →
China´s financial authorities are reviving so-called asset-backed securities (ABS) in a moderate pace. But ABS-expert Ann Rutledge warns in the China Economic Review against the dangers of this financial tool in the murky China financial markets.Read More →
Ann Rutledge, an acknowledged expert on dynamic structured credit modeling tools, has joined the China Speakers Bureau.Read More →
China is carrying a huge load of debts, and the only way out is to allow failing companies to go bankrupt, says financial analyst Victor Shih to Bloomberg. That fix should be part of the upcoming new 5-year plan, he says.Read More →
Debts are high on the agenda of the central and local governments, as local resources to pay debts of get capital for investments diminish, tells associate-professor Victor Shih in Bloomberg. The efforts of the central government to relieve local governments from debts might not help everybody.Read More →
The China Investment Corporation (CIC) obtained 100 billion US$ bond issue from the Ministry of Finance to finance the One Road, One Belt initiative, writes financial analyst Sara Hsu in The Diplomat. Although CIC has been initially less successful, Hsu expects China´s largest sovereign wealth fund will be able to make a huge profit.Read More →
The recent downturn in the stock market and the government restrictions on money capital transfers might hit transfers in China´s football leagues, says financial analyst Victor Shih to Associated Press. “It is a general problem for wealthy people in China who are major shareholders in companies,”Read More →
China has accumulated debts US$25 trillion and because of the relative high interest rates, that level of debt is unsustainable, argues financial analyst Victor Shih at the USC U.S.-China Institute. And when China gets into trouble, there is no IMF-style institution with enough capital to save it. A crashing stock market also does not help.Read More →
China´s fiscal deficit will be the largest in six years. Financial analyst Sara Hsu explains why this is a good move, so it can encourage spending, she writes in the Diplomat.Read More →
Smaller developers are the first ones to feel the contraction of China´s real estate market, writes financial analyst Sara Hsu in the Diplomat. The US$23 million default of the Kaisa group might only be the beginning or more trouble.Read More →