Practical analysis for investment professionals

China’s Liquidity Crunch


Joe Zhang on China’s Credit Crunch, Microcredit, and Systemic Risk

Joe Zhang, chairman of Wansui Micro Credit, says there is no problem with shadow banking in China; microcredit actually provides an invaluable service to small businesses. The key policy issue is how to make solid progress in liberalizing interest rates and ending financial repression.

Water Cheung: China’s Liquidity Crunch Is Nothing Systemic – Just a Wake-Up Call for the Financial Sector

China's liquidity crunch is just a “live stress test” on the financial system, and signals to the commercial banks and shadow finance entities that they must manage their liquidity positions, operations, and lending practices in a more prudent manner, according to Water Cheung, CFA.

Fraser Howie on China: Expect Nasty Shocks to Bank Balance Sheets

In the second installment in our series of interviews with experts on China, Fraser Howie explains why he thinks recent actions by the PCOB will fall far short of resolving the country's banking problems.

Michael Pettis on China: Too Much Credit Not Just a Problem for Shadow Banking System

Recent attempts by the People’s Bank of China to limit shadow banking have sent commercial lending rates soaring and Chinese stocks into bear market territory. In this first installment in a series of interviews featuring China experts, we ask Michael Pettis for his analysis on recent events.



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