China has long been an entrepreneur’s daydream – “If I could sell one pair of underwear each to a billion Chinese…”. Now, after almost 25 years of opening its gates to the outside world, how well are things working? In practice, there have always been two clearly separate strategies for taking advantage of China’s 1.3 billion people – (1) to…
Tag: China’S
Investing In China Chinese Banks
China’s banking sector has traditionally served as a party-controlled feeding trough for its inefficient, unprofitable state-owned enterprises (SOEs), most of which were technically insolvent. The process was simple – extend a loan to an unqualified SOE applicant, then write off the loan as a bad debt when it failed to repay. This situation is beginning to change, and Chinese banks…
Invest In China Equity Markets
China’s economy may be growing at the rate of almost 10% a year but its domestic capital markets are in a dismal state, forcing the private sector to disproportionate reliance on foreign investment for capital (particularly hard currency). Its domestic bond market is underdeveloped, its banks are saddled with bad debts, and both the Shanghai and Shenzhen stock markets have…