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Upbeat Outlook from Chinese Banks’ Profits Masks Growing Problems for Small Banks (Breugel.org) Higher balance of local government bonds and lower funding costs help smaller Chinese banks with their performances, but small banks still lack competitive advantage in attracting savings. [Bearish China small banks]
The Afterlife of Marx’s Footnote on Chinese Currency (Andrew Batson) The only Chinese monetary thinker cited in Das Kapital, Wang Maoyin,was an advocate of market independence. Beijing’s approach today over this subject matter seems to deviate from this path.
As The 2020s Dawn, China’s Search for Financial Stability Isn’t Getting Easier (George Magnus) Underperformances of smaller banks and lenders, an acceleration in the amount of foreign debt and an increasingly large amount of under-reported, non-performing loans are giving China a headache over its financial stability problems. [Bearish china credit]