Everything is under control – China linkfest

(Some links could be behind paywalls. Apologies)

China’s history problem: how it’s censoring the past and denying academics access to archives [Link]

Xi Jinping’s political theory system is complete now

China bans religious names for Muslim babies in Xinjiang

Why is this Xinhua edit invoking 1997 and 2008 crises? What is cooking?

China wants independent think-tanks to toe the party line

FT: The decision by Caixin — whose chief editor, Hu Shuli, also has strong relationships with Communist party officials — to publish its exposé suggests that the political winds are shifting against Anbang.

Yes, we should not forget that the media alone could make independent decisions when other elements of the society are not allowed.

WSJ: Screws tighten on risky Chinese insurance

WSJ: “China’s War on Debt Causes Stocks to Drop, Bond Yields to Shoot Up and Defaults to Rise.” I doubt if it is anything more than one of those ‘on-again, off-again’ thing or political hunting season.

Bloomberg: “The system-wide contraction is a result of a flurry of government measures over the past month that included ordering banks to bolster risk controls, stepping up scrutiny of shadow financing and cracking down on malfeasance among senior bureaucrats.”

A very good commentary on many things – on the world of ‘liberal’ media and on China – in one tweet.

Prof. Carl Minzner, Fordham School of Law, has given a speech at the India-China Institute in the New School on May 1 on China after the Reform Era. I requested him for a copy of the speech. He sent me this paper.

The implications of this Bloomberg story are many. Europe has no choice but to swallow a lot of things, if the biggest owner of its ‘Too big to fail’ bank is a Chinese group whose ultimate owner is…

Shandong province’ Zouping County’s Qixing Group is too big to fail for China and China is too big to fail for the world.

China’s credit excess is unlike anything the world has ever seen but, everything is under control


2 thoughts on “Everything is under control – China linkfest

  1. A thought experiment =

    We have 4Trillion USD reserves and we want to get rid of them without affecting the markets. So we create a round-trip transaction.

    Central bank creates Yuan Reserves and lends to commercial banks.
    Commercial banks lend to specified business houses. These houses take on USD loans to purchase USD denominated assets (strategic assets – intellectual property, brand patents etc) either in US itself or whereever USD is accessible.
    The value paid for these assets may be higher than normal. (say by X%)
    The USD loans will then go bad. In the panic Central bank will offer US Treasuries to backstop the loans (say at 70cents/$ a haircut definitely more than X%). The lenders will accept it and close the book.


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