Economic Sectors

03
Jul

Is China Likely to Deal with an Economic or Financial Crisis? What About Other Economies?

Those who compare the 2020 situation to let’s say the Great Recession, in our opinion at least, oftentimes fail to understand the fundamental difference between an economic crisis that affects industry after industry in a meaningful manner and a financial crisis which came as a result of Wall Street recklessness correlated with consumer greed and

23
Jun

The (Potential) Effects of Covid-19 Panic on the Chinese Economy

As mentioned on other occasions, our expertise pertains to matters of economics and as such, we will not formulate opinions when it comes to the medical dimension. What we will (try to) make clear, however, is that the economic dimension is also worthy of our attention, especially in light of the arguably unprecedented fiscal stimulus

21
Jun

Internet Security In China And How It Impacts U.S. Companies

Internet security in China is drastically different than in the United States. The two cultures have very different ideas of what is and isn’t allowed. This can create a lot of issues for American companies that want to do business in China (especially those which deal with technology or the internet). As an investor, it’s

19
Jun

13 of the Most Recent Chinese IPOs

One of the most exciting places to start investing is when a company is first made available for the general public. This is especially true for Chinese companies because it will be the first time that these companies are open to foreign investors. If you’re considering investing in China, it’s definitely worth checking out some

18
Jun

US Companies With a Large Presence in China

The United States and Chinese economies are becoming so intertwined with each other that it can be difficult to know where one begins and the other ends. U.S. companies have long enjoyed the cheap cost of manufacturing goods in China as well as the various opportunities associated with catering to the needs of 1.4 billion

17
May

Cartels in China: From Laws to Real-World Enforcement

From a strictly game theory perspective, it should come as no surprise that bypassing competition and forming cartels represents an attractive option for business owners. Why? Simply because the idea that capitalism favors business owners exclusively tends to be a bit of a myth, with those perpetuating it willfully ignoring the fact that realistically speaking,

14
May

Trying to Understand China’s Ever-Enigmatic Local Government Debt (LGD) and Local Government Financing Vehicles (LGFV)

Few topics generate more confusion than the local government debt (or) LGD one, in light of the fact that bookkeeping has been horrendous to such a degree that… well, pretty much nobody can clearly state how much debt we are even talking about, with estimates ranging from 35% to 60% of China’s GDP. At its

13
May

Household Debt in China: A Misunderstood and Underestimated Risk Factor?

We have dedicated an article to explaining what the three main types of debt are when it comes to China, an article to the elephant in the room which is the corporate debt dimension and another article to public debt, which is a boogeyman for countries such as Japan (with its public debt to GDP

11
May

Does China Have a Government (Public/National) Debt Problem?

Before continuing, we want to make it clear that this article only refers to government debt, also called public debt or national debt. As such: Household debt is not included Corporate debt is not included For more information on the types of debt that are relevant when analyzing a country, we would strongly recommend reading

10
May

China’s Corporate Debt and Recent Default Fears: From Chinese to Global Threat

As mentioned in another article, there are three main types of debt we need to keep in mind when analyzing a country: household debt (mortgages, personal loans, etc.), corporate debt (corporate loans/bonds) and government debt. Ask the average observer what type of debt he/she is least familiar with and, of course, corporate debt will most