Most analysts predict that the financial system can take the Brexit shock and engineer the transition to a new, albeit lower, equilibrium. However, few look at the possibility of a second shock, and even fewer dare to predict an Armageddon type of unravelling of events.
Shenzhen is now dubbed China’s Silicon Valley. Based on the City Competitiveness Bluebook of the Chinese Academy of Social Sciences, the city surpassed Hong Kong to become China’s most competitive city in 2014.
A report released on May 26, 2016 by the United Nations Environmental Programme shows that China will get forest cover on almost one quarter of the country by 2020 if the country succeeds in its mission towards building an “eco-civilization.”
On May 17, Germany’s Kuka received a friendly buyout proposal from Midea, a white goods appliances company based in Guangdong with annual sales of EUR 19 billion. Midea proposed to pay EUR 115 per share to buy the 86.5 percent of Kuka that it does not own.
A front page interview with an anonymous “person with authority” in the People’s Daily on China’s economic situation shows clearly what senior leaders think about the current economic issues facing China.
The article in the May 7 issue of The Economist on the coming debt bust of China’s financial system failed to move the RMB or other financial markets. Has there been a real change in the fundamentals of the Chinese financial system, or has the market simply changed its perception of the problem?