Official Data, Other Signs Hint at Bad State of China’s Economy
China’s sole engine driving growth is losing steam.
BUSINESS
Risk Watch: Before IPO, Bank of Chengdu Auctions Over 180,000 of its Shares
◎ On Jan. 12, a court in Chengdu auctioned off 180,800 non-tradable shares belonging to the Bank of Chengdu, which is undergoing an IPO.
Risk Watch: Industrial and Commercial Bank of China Branches Fined $5.2 Million for Illegal Sale of Corporate Wealth Products
◎ On Jan. 12, Heilongjiang banking regulators announced the investigation and punishment of 13 Industrial and Commercial Bank of China branches in Heilongjiang.
Risk Watch: China Merchant Bank in Trouble for Selling $154 Million Asset Management Product
◎ China Merchant Bank is a commercial bank headquartered in Shenzhen.
Risk Watch: Publicly Listed Tech Company Chairman Who Vanished With Firm’s Millions is Arrested
◎ Expect more cases like Lü Shangjian’s to surface in the near future.
Risk Watch: China’s Banking Regulator Issues 3 Regulatory Measures in 2 Days
◎ China’s plan to completely open up its financial markets in three years is an attempt to transfer some of its risks to foreign investors.
Political Risk Watch: China’s Green Drive Affects Multinational Taiwan Furniture Maker
◎ The CCP’s green drive has adversely affected Taiwan businesses in Jiangsu’s Kunshan City and Guangdong’s Zhuhai City.
Risk Watch: Missing Tech Company Chairman May Be Involved With Hengfeng Bank Probe
◎ We wrote after the 19th Congress that the Xi administration would focus its attention on rooting out corruption in the financial sector to safeguard against financial risks.
China Curbs Outbound Investments by Chinese Firms
◎ The Trump administration’s investment-friendly financial policies could attract foreign investors to move to the United States and worsen China’s capital outflow problem.
Risk Watch: Capital Chain Breaks for $700 Million Land Project in Nanjing
◎ The Qilin New Town development is the first “land king” to have stalled due to a lack of funding.