Investors can’t get enough of Cinda’s Hong Kong IPO. On Monday, day one of order taking for the Chinese bad bank, would-be shareholders put in bids of more than $10bn for only $1bn of product. And that’s before retail investors get their chance.
While it may offer a unique (for now) way of accessing China’s economic underbelly, there are some reasons why investors might want to think twice. Here are the main risks facing Cinda. Continue reading »
T S Eliot encapsulates existential despair in his landmark modernist poem The Waste Land with the phrase “I will show you fear in a handful of dust.”
Eliot’s bleak imagery is apparently not dark enough for Beijing Zhongkun Investment Group chairman, published poet, and Eliot fan Huang Nubo (pictured) – at least when it comes to describing the anguished feelings of Chinese entrepreneurs. Continue reading »
By John Howkins
The big entertainment news in China this year has been the rise in cinema box office to around $3.6bn, ranking second only to the US. According to Bank of America’s Jessica Reif Cohen, the annual growth rate for the past five years has been a staggering 47 per cent. There were more features filmed in Beijing this year than in Hollywood – though that is partly because US producers are leaving LA to seek cheaper locations. Continue reading »
How many billionaires does China have? Depends who you ask.
A new report from WealthInsight puts the number at 195, much higher than estimates by other media. Overall, China’s rich are set to grow fast in the next five years – just not as fast as they did in the last five. Continue reading »
The chart below says it all. From 5 years ago to today, China’s foreign exchange reserves have doubled, going from $1.8tn to $3.6tn.
Unabated, and on current trend, it would hit $5tn by early 2017. Already, Chinese reserves are the equivalent size of Germany’s GDP. Time to stop accumulating? Maybe so. Continue reading »
Do you bet on two baseball players who are on a lucky streak? The law of averages says no: in the long run, both players will revert to their mean scores.
By the same rule of thumb, Larry Summers says that economists should not expect India and China to grow significantly above their long-term average of 2 per cent per capita. (Anders Aslund has a similar argument – which beyondbrics examines here.) Continue reading »
China’s reform plan released after the Communist Party’s Third Plenum has been hailed as ambitious and bold. It certainly has far more in it than just the one-child policy reform and abolishment of labour camps. Here is beyondbrics’ summary of the plan, grouped by category. Continue reading »
Markets rallied on China’s latest reform proposals. But Robin Wigglesworth, capital markets correspondent, warns that while the country’s potential may be enhanced, stock markets will not be and growth could slip below 7 per cent.
By Shaomin Li of Old Dominion University
A quarter of a century ago in 1988, China’s one-child policy was in full swing and some side-effects had begun to show. Concerned about it, I wrote my doctoral dissertation examining this policy under the guidance of late professors Ansley Coale and Norman Ryder at Princeton, both founding fathers of demography as a scientific study. I was among the first to point out the major flaws of the policy, and my view then was regarded as quite heretic: I proposed an alternative two-child policy that could achieve the same population control goal as the one-child policy.
Needless to say, the Chinese government did not listen to me; now many of the social problems associated with the policy we worried about then have come to pass. It now seems the policy will be eased.
Twenty five years later, the findings and policy recommendations in my dissertation are still relevant and worth re-capping. Continue reading »
Initial reactions to the statement that came out of China’s third plenum can be summed up in three simple words: ‘was that it?’ Investors bemoaned the lack of details, and sent Chinese shares lower by 2 per cent on the day following the release of the document.
Fast forward to Friday, and Chinese equities are spiking. So have minds changed? Continue reading »
The FT’s Beijing correspondents look at the reforms announced at the conclusion of the third plenum of the 18th CPC Central Committee.
Chinese state oil companies have inked two fresh deals in the Americas, as they continue to expand abroad to meet China’s ravenous energy demand, write Ajay Makan in London and Samantha Pearson in São Paulo.
PetroChina, China’s largest energy company by oil and gas production, said on Wednesday it would buy stakes in three Peruvian oil and gasfields from Brazilian state oil company Petrobras for $2.6bn.
Hours earlier Cnooc said it was considering building a terminal to export liquefied natural gas from the west coast of Canada. Continue reading »
China’s distressingly frequent food quality scandals are bad news for Chinese citizens but may be good news for UK food exports – so long as China can be persuaded to eat foods it has never eaten before, and UK food brands can adapt their traditional fare for a different kind of palate. Continue reading »
If a county’s future wealth and influence can be assessed by its American-educated intellectual elite, then China is well set.
In less than a decade, the number of Chinese studying in the US has quadrupled, from a little over 60,000 in 2004, to almost 240,000 in 2013, a report from the Institution for International Education shows. China now accounts for almost one in every three international students in the US, a historic high for any country. Continue reading »