Tag Archives | shadow banking

China, Chemicals And Interest-Rate Arbitrage

By John Richardson

WHACK A MOLE on the head and another one pops up somewhere else. This is  tremendous fun as an arcade game but not that much fun, metaphorically speaking, for the Chinese government.

“The commodity-backed loans at the …

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China’s SMEs, Good And Bad, Under Threat

By John Richardson

THE cosy relationship between the state-run banks and state-owned enterprises (SOEs) has long held back economic rebalancing, but wasn’t a critical problem for small-and-medium-sized enterprises (SMEs) when official lending tripled in 2009 (have a look at the …

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China’s New Stimulus Package: What It Means For Chemicals

By John Richardson

CHINA’S petrochemicals markets are likely to enjoy a confidence rally as a result of yesterday’s announcement of a mini economic stimulus package.

The details of the stimulus package include:…

More railway construction.  The State Council released plans

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It Is Not A Question Of If, But Rather When

By John Richardson

IT is not a question if, but rather when Xi Jinping and Li Keqiang decide that enough is enough and get on with tackling China’s growing financial imbalances. That is if they don’t want the whole house …

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China Debt Dwarfs The Fed’s Quantitative Easing

YESTERDAY we highlighted how a crucial government meeting takes place in November in China. This could well outline the blueprint for economic reform over the next few years.

A major challenge facing China’s new leaders is the unsustainable surge in …

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China’s “Overwhelming” Overcapacity

By John Richardson

A HOPE being expressed by chemicals and polymer traders and producers the blog has spoken to this week is that the surge in lending in China during the first quarter will result in stronger GDP growth later …

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