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China: GDP slows to a more sustainable economic model

China: GDP slows to a more sustainable economic model
Is a slight flutter in the Chinese GDP—a 0.2% diminution—sufficient to cause a squall in the real and financial economies?  Can explaining a financial table determine chaos?  If this is possible in general and in a globalized economy, it is very less so in China’s case.  The latest data reports indicate a 7.5% second trimester growth with respect to the same time period last year.  Perhaps the predicted 7.5% annual growth will not be realized.  The alarm has sounded in offices across industrialized nations, in universities, and newsrooms.  But is Beijing equally worried?  According to...
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China Development Bank’s financing mechanisms: focus on foreign investments

China Development Bank’s financing mechanisms: focus on foreign investments
China Development Bank (CDB) makes use of different methods to promote overseas investments in infrastructure projects, expand its global portfolio and support Chinese companies abroad. It provides financing to Chinese firms, stipulates energy-backed loans to foreign authorities and national oil companies and invests in private equity funds. This paper outlines and discusses these schemes. Background China Development Bank is a major financial institution in the People’s Republic of China. It is at the center of Chinese infrastructural development and has financed high-speed railways, roads,...
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Banking in China’s Shadows

Banking in China’s Shadows
By its very definition, shadow banking is obscure, shrouded in secrecy, and difficult to discern. It is even harder to define shadow banking in China, where the official system is itself opaque and uncertain, an area where actual procedure is often diverges significantly from the rules. Shadow banking is usually a combination of financial instruments available on markets outside of the traditional banking system, but this does not mean that banks are not involved. They can carry out shadow banking operations, or even act as primary players, even though two principal differences are maintained. Safety...
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Chinese rating agency Dagong gets EU approval

Chinese rating agency Dagong gets EU approval
LONDON, June 7 (Reuters) – Dagong has been given the green light to operate in the European Union, the Chinese rating agency’s first international push to wrest market share from the “Big Three” that dominate globally. The EU’s European Securities and Markets Authority, which regulates ratings agencies in the 27-nation bloc, said Dagong Europe’s registration would take effect from June 13. Dagong Europe general manager Mauro Alfonso told Reuters the first research would be published by the end of the summer, with the focus on corporate ratings of banks and...
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THE FUTURE OF CHINESE COMPANIES’ OUTBOUND M&A: THE IMPORTANCE OF GEOGRAPHIC FOCUS

THE FUTURE OF CHINESE COMPANIES’ OUTBOUND M&A: THE IMPORTANCE OF GEOGRAPHIC FOCUS
Chinese outbound M&A activity Chinese companies have burst onto the global M&A scene in recent years. High-profile deals like the 2008 purchase of CIFA by Zoomlion in partnership with Goldman Sachs, Hony Capital and Mandarin Capital Partners, the 2010 Volvo acquisition by Geely, and the Nexen – CNOOC deal in 2012 to name a few, have introduced a new generation of Chinese companies to the world. This new generation of aggressive Chinese companies is seeking to break out of the Chinese home market, and acquisitions are becoming a preferred strategy for quickly reaching global scale. At the...
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