Risk Watch: Property Prices Skyrocket in Chinese Border Town in Anticipation of North Korean Liberalization
◎ China would be in an advantageous position once sanctions of North Korea are lifted and the country’s economy starts to liberalize.
◎ Fan Shuangwen recently issued a warning to large Chinese payment companies.
◎ American action against ZTE and Huawei is in line with Trump’s National Security Strategy.
◎ We have reservations about Beijing’s description of China’s economy.
◎ Xi consolidating power is a vital prerequisite for the economic liberalization to happen.
◎ The CCP wouldn’t risk a “rare earth war.”
◎ China, and not the U.S., would be more severely affected by China’s soybean tariffs.
◎ Beijing is likely very clear that a trade war is unavoidable, and it can only seek to delay its start and find ways to lessen the blow.
◎ The focus on deleveraging to defuse risks suggests that Beijing expects the trade war with the U.S. to have a massive impact on China’s economy.
◎ China cannot stop importing soybeans from the U.S. for two reasons.
◎ China wants tech giants and “unicorns” to list in domestic markets to prevent a liquidity crunch that could trigger a debt crisis.
◎ Guo Shuqing’s new assignment affirms the logic behind our analysis of China’s financial sector reform and personnel reshuffle.