ECB summary of China’s imbalances and risks

The ECB’s new “due diligence” paper on China reiterates why severe imbalances are inherent in the country’s high-growth model. Without a fundamental overhaul the...

The China property market risk

Nomura research has summarized evidence of oversupply of residential property in China. Urban floor space per capita is now estimated to be higher than...

How easy G3 monetary policy spills over into East Asia

A recent BIS paper illustrates the consequences of highly accommodative monetary policy in the G3 for East Asia. These include lower policy rates than...

China’s “double impact” on commodity prices

China consumes about one third of the world's commodities. However, its influence on commodity prices goes beyond that. Chinese institutions are also major users...

Understanding China’s “financial policy”

In most developed countries macroeconomic management is the domain of separate fiscal and monetary policies. In China, the focus is on “financial policy”, a...

China’s housing boom: numbers and risks

The surge in housing prices in metropolitan China is a systemic concern. A new paper estimates that price growth has been 8-13% per year...

The systemic risk of China’s local government debt

A Nomura research report suggests that China’s local government financing vehicles now pose a major risk for the economy. Their debt stock has surged...

The evolution of China’s monetary policy

China’s economy has long relied on compressed interest rates in conjunction with strict capital controls and a tightly managed exchange rate. A new ADBI...

A new Asian Crisis?

A Nomura research report looks at the rising financial risk premium across Asia. It shows that economic fundamentals are not as bad as they...

The threat from China’s shadow finance

In past years China witnessed a boom in shadow finance, particularly in form of entrusted loans. Banks apparently used shadow credit products in large...

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