Some investors have been spooked by the recent liquidity issues in the US repo market and the Federal Reserve’s subsequent attitude. As a brief explanation, a repo agreement or repurchase agreement is essentially a transaction between two entities, where the one in need of liquidity (the dealer) gives assets that it owns such as bonds
Macroeconomics
21
Oct
Oct
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China’s Transportation/Logistics Industry: A Key to Success?
This much is certain: while China is not the only emerging market growth success story, it is without a doubt the most impressive one. What is considerably less certain, to the point of generating intense debates, is what exactly it is that enabled China to grow at such a remarkable pace. One of the top
06
Sep
Sep
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Investing in China: “Fad” vs. Secular Mega-Trend
Many savvy marketers are quick to point out that in their opinion, humans make primarily emotion-driven decisions and justify them using reason. In other words, that perhaps most of the decisions we consider logic-based are actually nothing more than emotional decisions, cleverly designed by our ever-adapting brains. When it comes to the world of economics,
02
Sep
Sep
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Sino-American Business Relationships: From Political Rhetoric to Win-Win Real World Situations
If one were to exclusively believe media outlets with respect to the general state of Sino-American relations, it wouldn’t be the least bit difficult to arrive at the conclusion that we are in an economic war zone situation. However, it is worth noting that sometimes, there are two parallel economic universes: the political dimension on
30
Aug
Aug
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The (Economic) Future of China and That of the United States: A Few Long-Term Thoughts
When analyzing current China and US-related events, it is easy to succumb to the temptation of focusing exclusively on the past (historic trade volume patterns, GDP growth rates, etc.) and the present (describing whichever issue is currently “hot” or let’s say widely-debated), without giving enough thought to the future, especially longer-term considerations. As such, this
23
Aug
Aug
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China and the Renminbi in the Context of a Currency Crisis?
On more than one occasion, we have discussed various scenarios which revolve around (potential) developments in China after a financial calamity here at ChinaFund.com. In fact, an entire article has been dedicated to just that. However, these discussions have primarily revolved around a DEFLATIONARY environment, in other words scenarios such as a market crash which
16
Aug
Aug
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China, the Rise of Populism and (Geo)Political Correctness
Some of the most horrifying historical events are tied not directly but rather indirectly to financial calamities and the rise of populism in today’s Western world needs to be seen from precisely that perspective. In other words, it is historically unjustified to look for a simple “cause – effect” correlation, it tends to be remarkably
14
Aug
Aug
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China’s Wealthiest (?) Cities, Provinces and Autonomous Regions
It’s worth noting that from an administrative perspective, China has 22 provinces, 4 municipalities (Beijing, Shanghai, Tianjin and Chongqing) and 5 so-called autonomous regions (Guangxi, Xinjiang, Inner Mongolia, Ningxia and Tibet). We will leave its two special administrative regions aside (Hong Kong and Macau) and won’t even include Taiwan in this discussion because… let’s just
11
Aug
Aug
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China’s Quality of Life Statistics: Standard of Living vs. Nominal GDP
As pretty much any economist worth his salt can confirm, it’s relatively easy to find numbers which paint whichever picture you want to “pitch” or, in other words, I for one can easily come up with more than plausible fact-backed scenarios which paint a picture of glowing prosperity for China. However, I can just as
09
Aug
Aug
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China and Capital Flight: From Risk Mitigation to Excessive Control?
No matter which industry you are involved it, you’ve most likely come across more or less frustrating measures in the sphere of capital controls when it comes to the Chinese dimension of the industry in question. From brick and mortar industry limitations to China banning practices pertaining to exotic industries such as cryptocurrency-related ones, the