string(13) "markets-macro"

Macro

November 30, 2017

Debating FX reserves

There’s nothing we love more than a smackdown between officials. That’s why we took notice of Lu Lei’s comments yesterday at the Caijing annual forum. Lu is deputy director of the FX regulator. He was talking about FX management when he noted the need to be wary of liquidity mismatc… Username Password Remember Me … Read More »

There’s nothing we love more than a smackdown between officials.
That’s why we took notice of Lu Lei’s comments yesterday at the Caijing annual forum.
Lu is deputy director of the FX regulator. He was talking about FX management when he noted the need to be wary of liquidity mismatc...

sources

Caijing: 陆磊：储备管理不可局限于资产属性应着眼于宏观经济和金融稳定战略性考量

November 30, 2017

Zombies in focus

Speaking of Chinese bank debt – the IMF published a new paper this week that looks specifically at zombie companies and their resolution. Unsurprisingly, the paper finds that many zombie firms are SOEs. The paper makes an important contribution by estimating just how much zombie …

Speaking of Chinese bank debt – the IMF published a new paper this week that looks specifically at zombie companies and their resolution.
Unsurprisingly, the paper finds that many zombie firms are SOEs. The paper makes an important contribution by estimating just how much zombie ...

sources

IMF: Resolving China’s Zombies: Tackling Debt and Raising Productivity

SCMP: Beijing can boost economic growth if it beats the corporate ‘zombies’, IMF says

November 30, 2017

China’s incredible shrinking banking system

China’s banking system is shrinking. Okay – not really. But it is getting smaller in comparison to China’s economy, which is a step in the right direction. That’s why the chart above is hugely important – it shows that Chinese bank assets have grown more slowly than nominal GDP since…

China’s banking system is shrinking.
Okay – not really. But it is getting smaller in comparison to China’s economy, which is a step in the right direction.
That’s why the chart above is hugely important – it shows that Chinese bank assets have grown more slowly than nominal GDP since...

November 30, 2017

US launches trade investigation, China complains, life goes on

The US Commerce Department initiated a trade investigation into Chinese aluminum exports on Tuesday. That’s not unusual. What’s different (Xinhua): “the move marks the first time in the past 25 years that the U.S. government has launched such an investigation without a request from …

The US Commerce Department initiated a trade investigation into Chinese aluminum exports on Tuesday. That’s not unusual.
What’s different (Xinhua):

“the move marks the first time in the past 25 years that the U.S. government has launched such an investigation without a request from ...

sources

Xinhua: China strongly dissatisfied with U.S. anti-dumping investigations

MofCom: 商务部贸易救济调查局局长王贺军就美国对华通用铝合金板自主发起反倾销反补贴调查发表谈话

CNBC: US launches anti-dumping case against Chinese aluminum producers using rare aggressive tactic

November 30, 2017

Xi and Trump talk North Korea

Kim Jong-un launched another missile Wednesday – he claims this latest version could strike anywhere in the US. The test prompted Xi to speak to US President Donald Trump by phone. Trump, as always, wants China to do more (White House): “President Trump emphasized the need for China …

Kim Jong-un launched another missile Wednesday – he claims this latest version could strike anywhere in the US.
The test prompted Xi to speak to US President Donald Trump by phone.
Trump, as always, wants China to do more (White House):

“President Trump emphasized the need for China ...

sources

Xinhua: Xi says denuclearizing Korean Peninsula China’s unswerving goal

White House: Readout of President Donald J. Trump’s Call with President Xi Jinping of the People’s Republic of China

November 29, 2017

The harsh consequences of military reform

A former top general has committed suicide (SCMP): “A source close to the former Guangzhou Military Command told the South China Morning Post Zhang [Yang], 66, had hanged himself at his home in Beijing on the morning of November 23.” Some context: “Zhang had been linked to former disgr…

A former top general has committed suicide (SCMP):

“A source close to the former Guangzhou Military Command told the South China Morning Post Zhang [Yang], 66, had hanged himself at his home in Beijing on the morning of November 23.”

Some context:

“Zhang had been linked to former disgr...

sources

SCMP: Top Chinese general in graft probe commits suicide in Beijing

People's Daily: 张阳自杀身亡

November 29, 2017

Party’s bottom-line thinking in action

The public outcry over the eviction of migrant workers in Beijing (See November 27 Tip Sheet) has successfully spurred reaction from the government. It’s a slight reaction, but reaction nonetheless. Beijing Party boss Cai Qi had this to say (Beijing Daily): “[We will] pay attention t…

The public outcry over the eviction of migrant workers in Beijing (See November 27 Tip Sheet) has successfully spurred reaction from the government. It’s a slight reaction, but reaction nonetheless.
Beijing Party boss Cai Qi had this to say (Beijing Daily):

“[We will] pay attention t...

sources

Beijing Daily: 蔡奇在区委书记会上强调坚持守土尽责保一方平安

Beijing Daily: 蔡奇到大兴区西红门镇督导检查安全生产隐患排查时强调专项整治要坚定有序要有人文关怀

November 29, 2017

China’s plan for Europe

Li Keqiang is in Budapest, Hungary for the annual China and the Central and Eastern European countries (CEEC) summit. Some context: The CEEC includes China and 16 Central and Eastern European countries. It is often referred to as the 16+1 initiative. It was started in 2012 under the …

Li Keqiang is in Budapest, Hungary for the annual China and the Central and Eastern European countries (CEEC) summit.
Some context: The CEEC includes China and 16 Central and Eastern European countries. It is often referred to as the 16+1 initiative. It was started in 2012 under the ...

sources

China Daily: Li urges speedy construction of China-Europe land-sea express

Gov.cn: China to expand financing channels for Central, Eastern Europe

Budapest Business Journal: Orbán: outside technologies are needed

November 29, 2017

City-level banks in focus

The vice chairman of the banking regulator (CBRC), Wang Zhaoxing, is focused on city-level banks this week. That’s because he was speaking at an annual city commercial bank forum. Wang had some smart things to say: City banks have become a critical part of the banking system Their …

The vice chairman of the banking regulator (CBRC), Wang Zhaoxing, is focused on city-level banks this week.
That’s because he was speaking at an annual city commercial bank forum.
Wang had some smart things to say:

City banks have become a critical part of the banking system
Their ...

sources

China Securities Journal: “敲打”城商行银监会：强监管是今后主基调

21st Century Biz: 2017城商行年会延续“防风险”风向区域性银行已成小微服务“主力军”

November 29, 2017

Will weak deposit growth hinder the bank cleanup?

Speaking of “back to basics,” the fine folks at FT Confidential have a great piece highlighting one of the challenges for Chinese banks to return to their plain vanilla roots. They highlight both the initial accomplishments for financial de-risking as well as the roadblocks to consolidatin…

Speaking of “back to basics,” the fine folks at FT Confidential have a great piece highlighting one of the challenges for Chinese banks to return to their plain vanilla roots.
They highlight both the initial accomplishments for financial de-risking as well as the roadblocks to consolidatin...

sources

FT: Slowing deposits will hamper Chinese banks’ back-to-basics push

November 29, 2017

Caixin on banking “back to basics”

The “back to basics” mantra in China’s financial sector is getting some play in the media – both domestic and foreign (also see next entry). Caixin is out with an editorial that would not have been out of the place in the New York Times after the Global Financial Crisis. Th…

The “back to basics” mantra in China’s financial sector is getting some play in the media – both domestic and foreign (also see next entry).
Caixin is out with an editorial that would not have been out of the place in the New York Times after the Global Financial Crisis. Th...

sources

Caixin: Editorial: Finance Should Return to Common Sense, Original Purpose

November 29, 2017

Growth target debate heats up

China’s GDP growth target is the root of all evil when it comes to economic policymaking. That’s because hitting high growth targets can only be done by increasing leverage. More leverage equals: Lower medium- to long-term growth potential Greater risk of a financial crisis We’ve been seeing …

China’s GDP growth target is the root of all evil when it comes to economic policymaking. That’s because hitting high growth targets can only be done by increasing leverage.
More leverage equals:

Lower medium- to long-term growth potential
Greater risk of a financial crisis

We’ve been seeing ...

sources

Reuters: China, wary of market risks, likely to keep GDP target in 2018: policy sources

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