BEIJING | June 11, 2015 | By Zhang Yu and intern reporter Han Hui via Caixin | Financial institutions have become more cautious about lending money to investors playing the Chinese A-share market, which is seeing its strongest rally in nearly eight years even as analysts issue warnings of a collapse.
BEIJING | June 2, 2015 | By Xu Gao via Caixin | Unless obstacles blocking the flow of capital to the real economy are cleared, the financial market will continue to be trapped.
Iris Mir | China continues to struggle to avoid being swallowed by the challenges that stifle its stagnant economy while developing a new monetary policy. The IMF applauded the steps taken so far and no longer considers the RMB an undervalued currency. However China remains too cautious in its monetary reforms. Risking the country’s ambitions of further internationalize the RMB and the joining of IMF’s cherished Special Drawing Rights Basket.
BEIJING | May 27, 2015 | By Caixin Editorial Team | Emerging economies have been bracing themselves for a rise in U.S. interest rates. Last week, the release of the minutes of the Federal Reserve’s policy meeting in April sparked another round of speculation about when the rate hike might begin. Most now expect a start date in December, rather than September.
BEIJING | May 24, 2015 | By Zhang Yuzhe, Huo Kan and Xing Yun via Caixin | A bond program that takes aim at China’s local government debt problem could raise 1 trillion yuan, yet cut creditor yields.
Until very recently, Chinese investors’ preferred choice was the real estate sector. Chronic new housing oversupply led many to fear an eventual burst of the real state bubble and to abandon their brick and mortar investment ambitions. Looking for fresh alternatives, many are rushing into the buying of shares in the local stock exchanges. The number of individual investment accounts grew 400% in the first quarter of this year.
BERKELEY | May 4, 2015 | By Barry Eichengreen via Caixin | Chinese policymakers could depreciate the yuan, try monetary expansion or turn to fiscal stimulus. They could also do nothing.
LONDON | May 1, 2015 | By Asoka Wöhrmann, Chief Investment Officer at Deutsche AWM | The stock markets in India and China both still have potential. But arguments for investing in India are currently more convincing.
BEIJING | April 30, 2015 | Caixin Editorial | China’s stock market is on a roll, giving rise to a view that it could help revive the slowing economy. The two have an interesting relationship, and there are advantages and disadvantages to using the market to boost growth. Yet, in the current circumstances, the stock market will be hard pressed to perform that role.
The Corner | April 16, 2015 | For the first time since the beginning of the financial crisis, Japan overtook China as first holder of U.S. treasuries. Low rates and other monetary policy instruments carried out by Japan have prompted local investors to move their money to the US.