E-commerce companies and banks in China are scrapping hardware and uninstalling software for mainframe servers made by American suppliers in favor of homegrown brands said to be safe, advanced, and a lot less expensive.
The movement has...
China had 2,378,000 millionaire households in 2013, a rise of 82% from the previous year and almost double the 1,240,000 millionaire households in Japan, according to the Boston Consulting Group Global Wealth 2014 report ...
Just a few weeks after Chinese premier Li Keqiang admitted that China was going through “growing pains” in its engagement with Africa, Beijing’s central bank chief, Zhou Xiaochuan, acknowledged some of the 2,500 PRC companies operating in Africa...
Hong Kong authorities have interviewed Fang Fang, JPMorgan Chase’s former head of investment banking in China, as they investigate government bribery allegations.
Few would dispute that Chinese society suffers from a serious trust problem. After surviving crafty scams and shoddy products for...
Wall Street hiring in Asia is under increasing scrutiny after a U.S. criminal investigation into whether JPMorgan Chase & Co. employed children of China’s elite in violation of anti-bribery laws.
Citibank fund transfer delays sparks concern over a possible nation-wide liquidity shortage.
In a step to boost financial support for cash-starved smaller firms, The China Banking Regulatory Commission (CBRC) has announced its plan to maintain “prudential regulatory standards” in approving private banks.
The orchestra is tuning up for an interest rate liberalization initiative that financial analysts are calling music to their ears.
Recent high-level comments and policy statements heard in Beijing have clearly sounded a central government...
A recent report by the central bank about peer-to-peer (P2P) lending websites in China has shed light on some severe problems in the business for which there is, as yet, little regulation.
The original idea for P2P lending websites was...
A rare peek into the actions of China’s leaders in a month when a Chinese cash crunch spooked global investors shows a leadership falling short in its struggle to redirect China's economy and also faltering in its efforts to convey its...
China’s blueprint for economic reform is finally taking shape. The government has appointed a taskforce to draft the plans, ahead of the third plenary meeting of the 18th Central Committee. With the country’s economy at the crossroads, these...
Warning of local governments’ high exposure to bad debts, the credit agency Fitch recently downgraded China’s long-term local-currency rating from AA– to A+. Officials should take note: the downgrade underlines how closely international markets...
This paper investigates macroprudential policies and their role in containing systemic risk in China. It shows that China faces systemic risk in both the time (procyclicality) and cross-sectional (contagion) dimensions. The former is reflected as...
The People’s Bank of China will issue gold and silver coins celebrating the nation's first aircraft carrier.
A crowd of angry investors packed a Shanghai branch of Huaxia Bank on December 3 after they heard that the money wasn’t there for the first of four repayments for a 119 million-yuan wealth management plan. They demanded their money back from...
Two measures of manufacturing activity, the official Purchasing Managers Index and the HSBC Purchasing Managers Index, both rose above 50, which indicates expansion, for the first time in months. All is not rosy though, as this ...
Is China’s wealth management business a booming profit volcano for investors, or just another smoke-and-mirrors pyramid scheme?
It’s a question dividing the nation’s bankers and banking regulators as investors of all kinds pour cash into...
China’s arrival on the world scene in the 1990s was the largest part of globalization. It brought many benefits worldwide: lower prices to Western consumers, large profits to multinationals, huge windfalls to commodity-rich countries, and employment and strong export growth to China. China’s emergence as a major global supplier and trader helped to create a boom which brought global growth with lower inflation and, for a time, an illusory stability, and also made China into the largest financer of the developed world.
Capital flows out of China may be accelerating, a phenomenon commonly associated with waning confidence in a nation’s economy. But the foreign exchange regulator says the change is a step in the right direction.
In the first six months of...
A calm, confident Robert Diamond discussed financial restructuring in Europe and economic options for the Chinese government during a June 14 interview—thirteen days before the British bank where he serves as CEO, Barclays Group, was fined for...
Last August, a major pollution story broke in China: 5,000 tonnes of toxic chromium tailings had been dumped near a Yunnan reservoir, contaminating water...
(Dalian)—The sudden disappearance of a self-made billionaire in the coastal city of Dalian has unnerved not only bank executives concerned about loans they made to his companies, but also government officials who have lent generous support to the...
China’s banking system has been gradually transformed from a centralized, government-owned, and government-controlled provider of loans into an increasingly competitive market in which different types of banks, including several U.S. banks,...
As the American economy teeters on the brink of a double-dip recession, “China Bear” sightings have increased significantly. A loosely-knit group of economists and critics who see storm clouds looming over the Chinese economy, China Bears have a...
Interest rates in China comprise a mix of both market determined interest rates (interbank rates and bond yields), and regulated interest rates (lending and deposit rates), reflecting China's gradual process of interest rate liberalization. We...
The People's Bank of China (PBC) has made great strides in modernizing its monetary policy frameworks, but their effectiveness will diminish as the sophistication of the economy increases. Empirical evidence supports maintaining a reference to...
The recent wave of foreign investment in China's banks and the prospects of further opening of the banking sector under the WTO agreement suggest that foreign banks are likely to play an increasingly important role in China. This paper takes...
A study of the impact of labor market restructuring and foreign direct investment on the banking sector, using a dynamic general equilibrium model with a financial sector. Numerical simulations are performed using stylized Chinese data, and bank...
It is widely acknowledged that China’s financial system is deeply troubled. Its banks have very high nonperforming loan ratios and its stock market has lost 50 percent of its value since 2001 amidst a GDP growth rate averaging some 9 percent a...
As China's economy becomes more market-based and continues its rapid integration into the global economy, having an independent and effective monetary policy regime oriented to domestic objectives will become increasingly important. Specifically...
Substantial effort has been devoted to reforming China's banking system in recent years. The authorities recapitalized three large state-owned banks, introduced new governance structures, and brought in foreign strategic investors. However, it...
