BEIJING | Via Caixin Magazine | Chinese SOEs, the state behemoths, use systems that make dictators of top managers, a situation that must be addressed for corruption to be rooted out. Appointed outside directors, and learning from advanced economies such as Britain, can be a solution, he magazine believes.
HAMBURG | By Dr. Beate Reszat | The BIS Triennial Central Bank Survey of foreign exchange turnover makes a fascinating read. First of all, there is the rise in turnover volume: $5.3 trillion. Per day. By comparison: World exports in 2011 (the latest available number) were about $17.8 trillion. Per annum. Second, there is the number of currencies traded which, as the following list shows, has increased markedly. The Mexican peso and Chinese renminbi are even found among the top 10 most traded currencies now.
By Ray Kwong | China’s economy went from chump to champ in 30 years, with growth rates averaging 10% over three decades. To be sure, there are major downward shifts underway, but predictions that the Chinese economy will go down in flames—whether by crash, hard landing or [your favorite term here]—is crazy. Some detractors even foresee an economic apocalypse, one in which China will repeat Japan’s “lost decade” of stagnation.
Iris Mir | China starts a new round of economic experimentation. Shanghai is set to become the new engine of growth with a China’s first Free Trade Zone (FTZ). The goal is to attract foreign investment by testing new deregulation rules that should give foreign companies greater flexibility. But urgent reforms in other areas are a must in order to transform the rise of the income of Chinese households into real purchasing power.
BEIJING | By Andy Xie via Caixin Magazine | India and China, the elephant and the dragon, are entering a new chapter, and the main question they both face is whether they will reform before a crisis or after.
BEIJING | By Andy Xie via Caixin Magazine | As the U.S. continues to normalize interest rates, emerging economies become vulnerable. Brazil and India are at the eye of the storm, but China with its huge property bubble should be wary.
BEIJING | Calls to reform China’s one-child policy are growing, and the government should respond by considering the range of options available, Chinese economic magazine Caixin states. That would boost the economy by reshaping the demographic structure to support sustained growth.
BRATISLAVA | By Andrej Matisak | “Corruption is rampant. Giving bribes is not unusual. Do in Rome as Romans do. So many foreign companies have also followed the practice in China.”
BARCELONA | By CaixaBank research team | The credit provided by China’s financial system has grown at a very fast rate over the last few years, particularly in its so-called shadow banking system.
BEIJING | For Chinese economic magazine Caixin, well-managed sovereign investment companies are a trend China would do well to follow, given the size of the country’s foreign exchange reserves.