Politics Watch: China’s Finance Ministry and Central Bank Clash as Economy Worsens

In an article published on July 13, Xu Zhong, the head of research for the People’s Bank of China (PBoC), criticized China’s Ministry of Finance (MoF) for failing to actively implement fiscal policy to stimulate growth and for “playing the gangster.” On June 30, the Chinese Communist Party (CCP) had published a guiding opinion that …

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Risk Watch: China’s Local Debt ‘Iceberg’ Emits ‘Cracking Sounds’

Caijing Magazine’s 16th issue of 2018 (published on July 9) featured a cover page with a man hauling a piggy bank atop a cracking iceberg. The headline read: “The Worries of Local Debt Hanging High Overhead.” The cover page article likened China’s local government implicit debt to an iceberg, with a small portion publicly visible …

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