Author: kuveke

A preliminary survey suggests that China’s manufacturing sectors have contracted for the quarter. Although there have been numerous signs the Chinese economy is losing momentum the decrease in production will probably force a government stimulus to keep growth high. The report, which was weaker than expected, hurt Asian markets and the Australian dollar by a… Continue reading 8 Month Low for PMI →

Much attention has been shown to China’s companies in the past few weeks after Chaori was allowed to fail. As expected a number of small firms have teetered on the edge of bankruptcy and it was only a matter of time before news of another company in danger of failing broke headlines. Well the wait… Continue reading Letting the Pawns Fall? →

We have mentioned both in class and on this blog numerous times one of the major challenges to China is the huge investment in developing cities on the bet that after attracting migrants the real estate values would pay for themselves. As has been seen for the most part this hasn’t worked as planned and… Continue reading Another Round of Migrants, Please →

Australia’s relationship with China is great… or worrisome depending on who you talk to. Like many countries Australia has rode the Chinese wave, only Australia has ridden the wave more than anyone else. In 2013 out of Australia’s total exports 31% went to China. The reliance on China’s economy has been a boon for Australia… Continue reading Australia riding the Chinese Roller Coaster →

Amid worries of a demographic imbalance that is shifting China to an older society with more men than women- the result of various sex selection methods with a preference for boys- China allowed married couples where one person in the couple was a single children to have children. The new policy which went into effect… Continue reading Relaxing Child Policy →

Natural gas is becoming cheaper as the energy source grows in popularity and new breakthroughs in technology give way to more efficient methods of extracting from shale. In China natural gas is seen as a way to reduce pollution in major cities such as Beijing as well as too become less energy dependent on other… Continue reading Energy Logistics →

Chinese pressures in the East and South Chinese seas have not diminished since newspaper articles last year hinting at war between Japan and China over the Senkaku islands. In fact although the tensions have escaped international attention China is still seeking to expand its territories and test the responses of its neighbors to territorial aggression.… Continue reading Chinese Military Tensions →

Interbank lending rates in China are rising and have been for months. One reason for the increase is market volatility. Back in June rates spiked after a rumor of two mid-size banks defaulting on their loans. In recent months rates have inched up as cash reserves dry up as the PBOC attempts to reduce the… Continue reading Interbank Lending on the Rise →

Where there is money there are attempts to dodge taxes. This has been true everywhere in the world. Tax shelters are a continual concern in the US and is not uncommon to read about individuals who have successfully or not sheltered millions from the IRS. At the same time companies do this as well, by… Continue reading Human Capital Losses →

While the stimulus conducted in the U.S. has been a hotly debated topic most Americans are unaware that Chinese stimulus spending has outpaced the U.S since 2009. The People’s Bank of China has been stimulating the economy by issuing more renminbi, the official currency of China, and then buying dollars in currency markets to slow… Continue reading M2 and Asset Price Bubble →