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Analysis-Yuan loses core support as firms leave China

Since China opened to foreign investment in 1978 under Deng Xiaoping, global firms have ploughed in hundreds of billions of dollars to buy and build factories for market access and cheap labour, bolstering the Chinese currency. A gentle downtrend in foreign direct investment gave way to a steep drop last quarter and inflows to China slammed to their lowest since records began 25 years ago, raising the prospect that the long-term trend is turning. Corporate leaders and their advisers say a shif...
New South Wales Yangtze River China General Deng Xiaoping Tom Westbrook Lee Smith
Source: yahoo.com

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Analysis-China can no longer 'extend and pretend' on municipal debt

China's promised "basket of measures" to defuse local government debt risks is likely to include special bond issuance, debt swaps, loan rollovers, and something Beijing really loathes: dipping into the central budget. Local governments are fundamental to China's economy, with Beijing tasking provincial and city officials with meeting ambitious growth targets. Chinese leaders last month pledged, without detailing, to help ease their debts, signalling worries over a potentia...
Marius Zaharia Guo Tianyong Logan Wright Samuel Shen Kevin Yao Tao Wang
Source: yahoo.com

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