Author: fishman

Recently, American investment banks have fallen under scrutiny for their hiring practices in China. Specifically, the hiring related to applicants with close familiar ties to Chinese governmental officials with particular political influence. The SEC’s industry-wide investigation revolves around US bribery laws, which prohibit the exchange of favors for beneficial treatment. Prior reports from a former… Continue reading Turns Out The SEC Does Not Feel The Same About Guanxi →

The ongoing conflict regarding the territory dispute between China and Japan is provoking heightened military action, particularly with regards to Japan. China’s air-defense identification zone became effective November 23rd. The country stated that it would take “defensive emergency measures” if unreported or unidentified aircraft enter the area. So naturally, the US sent unarmed B52 bombers… Continue reading China’s Air-Defense Identification Zone Provokes Further Militarization →

     The most recent third Plenum has proposed many bold, structural reforms that, if implemented correctly, can both enhance the effectiveness of the government and improve the standard of living. The 60-point document has outlined measures to enable local governments to sell bonds in order to fund construction, thus deepening financial markets. Moreover, there… Continue reading Plenum: Market, Hukuo, SOE, and One-Child Policy Reforms →

Following the most recent four-day Plenum, China’s top officials have begun cementing President Xi Jinping’s power regarding initiatives within the military, domestic security and foreign policy jurisdictions, further establishing him as the country’s most singularly influential leader since Deng Xiaoping. This development reverses the trend toward a collective leadership that has been occurring since Deng’s presidency.… Continue reading A More Ubiquitous President Xi →

At the upcoming Plenum, the CCP’s central committee will embark on a four-day gathering to focus on policy for the coming year. At the event, many analysts are expecting “local-government funding” to be one of the top three most likely areas of policy discussion, predicting that China will focus on reforming the issue over the… Continue reading Chines Municipal Debt: A Growing Issue →

The article is another reiteration of the growing consensus between Chinese officials for a transition in the balance of the economy between net exports, investment, consumption, and government expenditures. The Chinese economy is poised to grow at the country’s slowest pace in approximately one quarter of a century—7.5% annualized—as tepid global demand is negatively impacting… Continue reading Finding the “Golden Balancing Point” →

The 14 year-old Chinese e-commerce giant Alibaba, which resembles the Chinese Amazon.com, is beginning an initiative to drastically revamp its labor-force. The firm is looking to hire 1,000 recent college graduates as new employees for 2014. As the competition for human capital grows more intense, Alibaba has announced that it will offer qualified individuals as much… Continue reading Chinese Internet Giants Vie for the Top Human Capital →

The Reuters article highlights the increasing number of corruption convictions occurring in China. Since 2008, China has convicted nearly 150,000 people. Not only that, but approximately 66,000 people have been accused of accepting bribes while 23,000 were accused of soliciting bribes. I would guess the bribe aspect is a component of the cultural system of… Continue reading Ending Corruption: The Chinese Struggle Towards Democracy →

In an attempt to further the use of the Yuan internationally, China has added the UK to its short list of countries—Hong Kong and Taiwan—who maintain the legal right to invest offshore Yuan in Chinese securities. This program is intended to provide an additional channel for the Chinese financial markets to continue their liberalization. Governor… Continue reading China Continues to Open Its Financial Markets →

The article discusses a recent Spanish criminal court’s ruling to accept a Tibetan advocacy group’s indictment of former Chinese President Hu Jintao for genocide. Specifically, during his tenure as both Himalayan Communist Party Secretary, 1988-1992, and President of the People’s Republic of China, 2003-2013. This ruling theoretically should lead to demands for Hu Jintao’s arrest… Continue reading China As An Empire: Issues Regarding Tibet →

Michael Pettis’ article provides a bearish short to medium-term view on China’s inevitable shift toward a more consumption-based economy. Highlighting the “distorted national balance sheet, marked by burgeoning debt and decreasing ability to finance that debt,” the Chinese economy is still fragile and developing, which has significant implications for the global economy—especially economies that have… Continue reading Consumption-Repressed to Consumption-Driven: Effects at Home and Abroad →

The growth in Chinese demand for luxury goods is a testament to the strides China has made developmentally over the past few decades. Now containing the most millionaires in the world, the purchasing power of the Chinese Consumer will continue to be a driving economic force. Highlighted in August’s luxury, German car data, it is… Continue reading Chinese Consumer Drives Demand for Luxury Autos →