Chinese Economics Thread

luminary

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China’s financial sector is reeling from a series of new corruption probes and a surge in surprise audits of venture funds, as President Xi Jinping steps up his cleansing of an industry he sees as falling short in serving the broader economy.

With Beijing’s graft-busting Central Commission for Discipline Inspection (CCDI) being unleashed on the sector and warning against “hedonism” and “high-end lifestyles”, banks have also been making deep cuts to
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and bonuses
as former high-ranking officials come under investigation.

According to analysis of more than 20 mainland financial brokerages, about three-quarters have cut management pay in the past year. CICC, a top investment bank, slashed salaries by more than 10 per cent in 2022 while bonuses are likely to fall as much as 40 per cent, two bankers told the Financial Times.

Financial regulators will suffer lower salaries after reforms demoted their pay bracket to that of civil servants.
Zhu Jiangnan, an expert in Chinese corruption at the University of Hong Kong, says the new leadership genuinely sees a “serious problem” in the risks of financial sector corruption damaging stability.

“The party centre . . . worries that corruption in this sector, which takes many different forms and involves cadres of different levels, as well as financial agencies of different types, may jeopardise the financial safety of the country,” she added.
Since February, more than a dozen executives have been investigated or penalised as the feared CCDI began a fresh drive to “resolutely” fight misconduct in the sector and eradicate executives’ “wrongful pursuit” of becoming financial elites, as it put it. In the most high-profile case, Liu Liange, a former chair of Bank of China, one of the country’s biggest banks, came under investigation at the end of March.

Financiers with links to leasing deals, a loan type for equipment and logistics in industrial sectors worth $520bn in 2021, are also subject to CCDI probes. They include Cong Lin, who previously led the leasing department at Industrial and Commercial Bank of China, the world’s biggest bank. Cong joined China Renaissance in 2020 and that investment firm’s founder Bao Fan has been
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, believed to be in state custody.

Cong previously overlapped at ICBC with Li Xiaopeng, former chair of state-owned financial conglomerate China Everbright Group. The CCDI this month announced Li was under investigation for “serious violations of discipline and law”.

Also this month, Li Li, former Shanghai president of the Export–Import Bank of China, was charged in the south-western province of Yunnan with taking bribes equivalent to about $14mn after signing off financial leasing loans to corporates.
CCDI special inspections have extended to other institutions such as the Shanghai Gold Exchange, while venture capital investors in Beijing say they have been hit with additional tax audits as pressure on the sector broadens.
 

KYli

Brigadier
Although the Chinese government has taken on more debt in the last few years, this IMF graph is a joke as it excludes state and local government of the US in calculation debt to GDP ratio but includes state and local government debt for China debt GDP ratio. It is as bias and as useless as you can get from MSM and IMF.
 

FairAndUnbiased

Brigadier
Registered Member
View attachment 110802

I give Xi high marks for scientific policies and boosting R&D. His lackadaisical approach to public debt is less impressive. Given China's nominal per capita GDP is still 1/5th of America's, there's no reason why debt should be increasing this fast.
It's the opposite.

Debt while developing is worth while because expectation is of future growth paying it back.

Debt while developed is bad because there's no expectation of high future growth. So how does it get paid back with interest? Taking on more debt to pay back old debt.
 

CMP

Senior Member
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Although the Chinese government has taken on more debt in the last few years, this IMF graph is a joke as it excludes state and local government of the US in calculation debt to GDP ratio but includes state and local government debt for China debt GDP ratio. It is as bias and as useless as you can get from MSM and IMF.
As I have warned before, even "data" (and any visualization thereof) in the Western disinformation sphere are propaganda.
 

Quan8410

Junior Member
Registered Member
Now all we need is for Shanghai-ers to stop being hanjian cucks to the West.
It's expected. When you have very high education and the name you find in textbooks are Newton, Einstein, Leibniz, Maxwell, Hawking, Bernoulli etc instead of Zu Chongzhi or Shen Kuo, you will have an impression that the west is very impressive and your country sucks. Textbooks should be rewritten to change this impression.
 
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