Dating back to 1935, China’s system of five-year plans has long been dismissed as anachronistic, but it remains crucial to guidance of the economy
According to the CKGSB Business Conditions Index (BCI), businesses in China remain confident, but it remains unclear if they will continue to. In October 2015, the BCI posted a figure of 54.0, a mild rise over September’s 51.1 and slightly above the confidence threshold of 50. The BCI hit a 14-month high of 61.3 in May 2015 before sliding steadily, with readings from July to September hovering above 50, indicating that the sample firms became less optimistic about business conditions with regard to the following six months. Despite a moderate rally, it is unclear whether the momentum will hold and so companies need to remain cautiously optimistic.
Chinese companies are on an acquisition spree abroad. On paper, buying abroad may make sense, but from strategy to execution, a lot can go wrong. For every company that buys the right asset at the right time for the right price, handles the regulators of its industry in the right way and manages the integration with just the right touch, as many as four others flounder. Many studies have found that 50-80% of mergers fail to create any additional value, and that in fact a bad acquisition can cost the new company dearly. So how do Chinese companies fare and how can they do better?
Alan Krueger, former Chairman of the White House Council of Economic Advisors, shares his thoughts on the labor market, US economic recovery and the interplay with China.
Yukon Huang on the mechanics of the Asian Infrastructure Investment Bank, China’s role in its governance, and comparisons with the World Bank and the ADB.
As the global economy looks to emerging markets for growth, investors rush in for the high yields of emerging market bonds. But what about the risks?
Politics can often be a deal breaker in business between India and China. But now that might change due to changes in both economies.
Carl Walter, former COO of JP Morgan in China and CEO of its China banking subsidiary, paints a gloomy picture of the Chinese banking system and outlines the possible risks involved. In the aftermath of 2008’s global financial meltdown, China’s financial system seemed to have emerged unscathed. The country’s economic configuration, often dubbed “Capitalism with Chinese characteristics” by Chinese […]
Why would a steel company get into a wildly-unrelated area such as pig breeding?