Tao Ren, at the School of Public Affairs of the Zhejiang University, presents an analysis of how Xinjiang has moved from ‘barbaric frontier’ in the 1700s to the ‘inalienable territory of China’ it’s regarded as today. The shift has a complex history but the discovery of significant mineral resources and territorial horse trading with the […]
Category: Sunday Papers
Professor Daniel C. K. Chow of the Ohio State University lays out in detail America’s beefs with China that’ve led to its crippling the work of the WTO. The process was initiated by the Obama administration in 2016 and completed in 2019 under the Trump regime by America refusing to appoint representatives to the Appellate […]
Investors in China’s Non State Owned Enterprises (NSOEs) have been keelhauled in recent years. Starting with scorched-earth in the for-profit-education sector the shellacking continued through the New Economy cabal and most recently portfolios exposed to the property sector have been hammered. Not unnaturally, there’s a growing sense that State Owned Enterprises (SOEs) may be a […]
Honggang Xue (et al.) from the Xi’an Jiaotong University uses the lens of ESG benefits to take on the sensitive issue of whether or not Party involvement in running companies in China is a good thing. Since 2018 Company Law in China has mandated a Party structure inside State Owned Enterprises (SOEs) and many Privately […]
That Corporate Governance (CG) differs in China from both the Anglo-American and German-Japanese models is not news; but the how and why of this is the subject of a paper from Fuxiu Jiang of the Renmin University of China – School of Business and Kenneth A. Kim of the Tongji University – School of Economics […]
Yichu Huang from the East China University of Political Science and Law (et al.) recognized a natural experiment presented itself in the form of the Wuhan lockdown in 2020. They wondered, what would be the effect on retail investor activity during a period when smaller investors were prevented from meeting Face to Face (F2F)? The […]
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The Sunday Paper – China’s Slowdown
There’s no argument about whether or not China’s GDP growth rate has slowed (above). Professor Barry Eichgreen from the Department of Economics at the University of California at Berkley (writing in the KDI Journal of Economic Policy) wants to go deeper into the cause(s). The professor decided to test seven popular hypothesis about the reason(s) […]
The paper sidesteps the broader issue of whether or not subsidies are a good or bad thing but gets into whether or not there’s information in their granting that researchers can use? Yiyuan (Ian) Sun, from the School of Management at the Jinan University (et al.) took a close look at Chinese listed companies from […]
Shixiong Cao from the School of Economics at the Minzu University in Beijing pulls no punches in trying to answer the question. He begins by noting although China publishes more research than any other nation their tally of science related Nobels (2 in the last 120-years) is tiny and many so-called advances touted as world […]
Always nice when academics supply proof for prior suspicion. In this case the ‘superiority’ of Southern China based firms versus Northern China peers. As a rough guide I’ve always drawn a line along the Yangtze to demarcate North from South in China. The researchers in the paper highlighted today have taken their line from the […]
Classic economic theory posits that being richly endowed with good quality arable land will retard an economy’s transformation to higher value added industrial activity. Just as diamonds, gold and oil have cursed economies some have suggested agricultural land might be as much of a problem. Until the paper highlighted this week however nobody had conclusively […]
This paper may quickly become an historical artifact. It’s input, Environmental Social and Governance (ESG) ratings, and it’s output, algorithmic derivations of results using machine learning are analytical tools changing at such a pace as to condemn almost all research using them to obsolescence upon publication. Moreover I, and many other investors, have spotted a […]
Writing in a working paper for the Brussels based think tank Bruegel, Alicia Garcia-Herrero and Jianwei Xu contribute usefully to the question of what effect China’s ageing population may have on productivity? The short answer is ‘not much’, at least until 2035. Even after that the ageing population isn’t a guaranteed productivity retardant. As a […]
A brief personal preamble. I maintain Chinese banks are among the best run and safest financial enterprises in the world. This view is incontrovertible in only one circumstance i.e. you believe they falsify their numbers. The fact many do* explains the multi-year drubbing valuations have suffered. [*Believe banks falsify numbers not that banks do, in […]
On balance, the IMF give China a clean bill of health in their latest annual assessment. What they’ve chosen to particularly focus on in this report is the ongoing mess in the property market and the concomitant rise in debt at the local government level. This focus is in line with what we believe China […]
A debate in public and academic circles has yet to be settled on the issue of whether banning certain products is effective. America famously banned alcohol a while ago with very mixed results, and reversed the decision not too long after. Today, the argument continues as we vex about whether, or not, we should permit […]
Françoise Huang (et al.), Senior Economist for Asia Pacific and Trade writing in an Allianz Research paper revisits the notion that the Chinese Renminbi (Rmb) may be heading to a position of ‘co-hegemony’ with the U.S. Dollar (U$). The brief begins by noting since 2009 the influence of the Rmb has doubled in size in […]
Whilst the proportion of goods imported by Korea from China has been steady the proportion of goods imported by China from Korea has been falling. This development is highlighted in a short brief from Jung Min Han and Jeong-Hyun Kim writing for the Korea Institute for Industrial Economics and Trade. They note Korea’s proportion of […]
Bad news for those hoping for a broad recovery soon in China’s residential property market. Xiguang Cao (et al.) from the East China University of Political Science and Law has looked at 287 Chinese cities from 2005-2018 to see if aging populations correlate with lower house prices; and they do. Studies from the mature markets […]
Chun Zhou and Samantha Tang from the Zhejiang University and the National University of Singapore note past flurries of excitement about the possibility of hostile takeovers becoming a business in China. However, in the paper highlighted today they push back on the notion this is an inevitable development and conclude instead “it is the futility […]