CHINA ADVISORY
Analyst
Andrew Collier
Former President, Bank of China International USARecent Country Insights
China’s new financial centralization
CHINA ADVISORY · Report · 14 Mar 2023
China has made the most significant changes to its economic governing in several decades. It has placed power for the regulation and oversight of the financial system in the hands of a governing group in the Party. This could impact the country’s growth and financial stability. Specifically: ...
SVB and Asian banks
CHINA ADVISORY · Report · 13 Mar 2023
Generally, contagion risk from the Silicon Valley Bank situation is minimal—apart from the issue of “animal spirits…” What are the risks that could affect Asian banks? * Excessive concentration of digital assets in the banking system. However, most digital start-ups obtain funding from ventu...
The death of China sourcing
CHINA ADVISORY · Report · 07 Feb 2023
Global corporations are shifting their supply chains from China to other countries due to China’s Covid policies, rising state control, and concerns about deteriorating US-China relations. The top destinations are India and Vietnam. Much attention has been paid to the impact of the potential loss...
China’s tech crackdown is not over
CHINA ADVISORY · Report · 20 Jan 2023
Shares in China’s technology sector have risen sharply due to a perception that the central government is relaxing its regulatory restrictions on the industry. This would be a mistake. Control mechanisms are in place that will hinder the industry’s growth. There are certain key sectors – namely, ...
China’s abrupt U-turns
CHINA ADVISORY · Report · 10 Jan 2023
China has done an about-face on a number of issues that signal a sudden realization that the economy continues to slow and the country’s policies are not working. China has reversed course on domestic Covid control, the property market and its former frosty approach to diplomacy; we even witnesse...
The politics of Covid in China
CHINA ADVISORY · Report · 07 Dec 2022
China’s current management of Covid measures points to a leadership vacuum, narrow thinking, and general bad management. More broadly, as the country’s medical and economic problems mount, the shortcomings of the Xi Jinping regime’s political management style are going to become more apparent, wi...
Winners and losers in China’s property market
CHINA ADVISORY · Report · 25 Nov 2022
China has announced a package of stimulus measures for the property market. They are a compromise between full economic support and the previous harsh restrictions on the property developers. However, many of the measures are focused on demand, while consumers are reluctant to invest in an unstab...
Politics are winning over economics
CHINA ADVISORY · Report · 14 Nov 2022
Bloomberg just published a story about significant new support for China’s property market. Measures announced thus far include asking banks to extend 1 trillion yuan in emergency support for the property market by end-2022, reducing interest rates, and, according to Bloomberg reporting, develope...
De-risking and Chinese equities
CHINA ADVISORY · Report · 14 Nov 2022
There is pressure, primarily from the U.S. pension and retirement funds, to “de-risk” by reducing the weight of Chinese equities in overall portfolios. The official China data for September 2022 show net portfolio outflows. Future months are likely to show negative growth as de-risking sentiment ...