Munich Re Signs Photovoltaic Module Guarantee Cover for LDK Solar
CNNMoney.com (press release)
... the general economic and business environment and conditions, the volatility of LDK Solar's operating results and financial condition, its ability to ...

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Can Shanghai’s Metro Handle EXPO? (Mar 10)
Among all the chants of “being ready” (or was that Beijing Games?) and the billboards counting down the seconds between now and what is sure to be an event to remember, I have one fear…. that Shanghai’s metro is just not going to be able to cope with all the traffic. It is a concern that [...]


New York Times: "Educated and Fearing the Future in China" (Mar 9)
One reason this blog was started was to give advice to Chinese students on where to study in the UK (for economics and finance). See right hand column and scroll down.

One big issue is the real value of education. Education is seen as very important in China and families will save for 20 years to send their only child to take a postgraduate education for 1 year in the UK.

Does this make sense? Are the returns high enough? The New York Times investigates.

A number of opinions are sought. This article makes a number of important points.

Bottom line - the number of high skilled jobs is not matching supply - result - unemployment of highly educated (and expensively educated) workers.

There is a lot of economics that needs to be considered. (1) too few graduates going into self employment, (2) too much concentration in the coastal cities forcing up wages and house prices, (2), education system and what it really teaches, (4), brain drain.

Educated and Fearing the Future in China [NYT]

As China’...


China's reserves - what are they good for - not as much as you think (Mar 1)
This is the second post paying homage to the Pettis explanation of the role of China's foreign reserves.

The bank of China holds massive foreign reserves. That is agreed. What is far less clear is what these reserves can be spent on. The man in the street might say - "use the money to build hospitals and schools".

Pettis explains how it really works. This is good and well explained economics (certainly better that I could do without spending a lot of time).

It is important that as many people understand the arguments here as possible especially journalists and fellow economists.

What Pettis misses is that whilst the economics is correct he underestimates the importance of the group of losers he labels "exporters" and the associated jobs. Job creation in China is crucial to maintain political stability. These is a cost to maintaining a low RMB value against the dollar but I suspect the Chinese government sees this as a price worth paying (for the time being).

Can PBoC reserves protect Chi...


Dollar Smirks in Asia (May 7)
(Morgan Stanley)


China's Multinationals Creep Abroad (May 6)
We know China's emerging multinationals are venturing into the world in pursuit of natural resources, talent, technology, brands and customers. The only surprise is that they haven't moved further and faster. Three McKinsey consultants offer some clues to what has been holding them back. (Forbes)


China tops ASEAN poll of good partner nations (May 3)
China topped the list of six member nations cited by states of the Association of Southeast Asian Nations as important partners for their regional bloc, according to a survey taken by Japan's Foreign Ministry. (Yomiuri)