That sense of insecurity is almost universally shared within China now, across all walks of life,” said Chen Zhiwu, a professor of finance at the University of Hong Kong. “And that is why the government has been using all the official media and all other tools to convey a positive, optimistic message.
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Zhiwu Chen, a professor of finance at the University of Hong Kong, said China’s policy makers have long believed that diverting resources to the state sector can generate growth more quickly and more reliably than handing money to people. They see consumers as more fickle and less easy to control than state companies, he said, not certain to spend more money even if they had it.
Brazil, Russia and China are “the most serious” about de-dollarisation, said Chen at the University of Hong Kong. “As long as enough people can believe in a certain payment system, then the system becomes more of a reality,” he said.
“As long as stock issuers lay out the good and the bad, they will not be held accountable if these bad things—which hopefully will never happen—do happen,” said Zhiwu Chen, a finance professor at the University of Hong Kong who sat on the CSRC’s international advisory council from 2012 to 2019.
“The regulators have introduced a lot of ambiguous steps that must be followed around winding down, and winding out, of foreign investments in China,” Professor Zhiwu Chen, chair of Finance at Hong Kong University, told FinanceAsia.
“His (Wang’s) challenges are only bigger now,” says Chen Zhiwu, chair professor of finance at the University of Hong Kong. “IPOs, bond issuance, bank loans … all these funding opportunities are now first and foremost reserved for SOEs [state-owned enterprises] and strategic industry players. It is definitely not easy for real estate developers and companies in not so strategically important sectors.”
“Wall Street banks should have factored in geopolitical risks a long time ago,” said Chen Zhiwu, a professor of finance at the University of Hong Kong Business School. “Over the next five years, the best case scenario for them is that China reverses direction and goes back to real open-door policy and market reforms, revitalizing the business environment. This is an extremely unlikely scenario but not impossible.”
在和端传媒的访谈中,陈志武谈论到中国经济的复苏困难,和在目前地缘政治局面与国家管制的情况下面临的双重困境,以及在接下来的发展过程中会出现的方向变化:我们在过去二三十年目睹的中国经济增长与普通人生活改善的路径,在未来也许会发生彻底的转变。
China has encountered its share of financial distress during its decades-long transition to a modern industrial economy, but regulators have used their considerable powers to repeatedly prevent catastrophe.