The Financial Crisis: Parallels To The 1930s [VIDEO] ·
Henry Farrell of George Washington University and Daniel Drezner of Tufts University discuss the parallels between the current financial crisis and that of the 1930s as well as examine the role of China in a global economic recovery. (bloggingheads.tv)
October 30, 2008
China
Financial Crisis Hits China’s Billionaires ·
The combined net worth of China's 400 richest citizens dropped roughly 40% to $173 billion in 2008 amid a 60% plunge in mainland stocks and a 50% drop in Hong Kong shares. (Forbes)
China Cuts Rates Ahead Of Fed Meeting ·
The People's Bank of China cut its benchmark interest rate Wednesday to 6.66%, the third cut in six week, as the government tries to shield its emerging market from the global credit crisis. (Reuters)
Brown: China, Gulf States Should Help IMF ·
U.K. Prime Minister Gordon Brown said Tuesday China and the Persian Gulf states should substantially increase their conributions to the International Monetary Fund 's $250 billion emergency reserve to help nations struggling with the financial crisis. (Bloomberg)
Dixon/Hadas: How to Control a Currency Panic [OPINION] ·
Edward Hadas and Hugo Dixon of Breakingviews.com argue that China, Japan, the United States and Britain should immediately rally world governments to defend target exchange rates or risk a complete breakdown in the global trade system. (NYT)
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China To Lend $25B To Russian Firms Hit By Credit Crisis ·
China is reportedly in talks to extend up to $25 billion to Russian oil companies hit by the credit crisis in exchange for access to 300 million tonnes of Russian oil over the next 20 years. (Reuters)
Citic Pacific Shares Fall 55% Amid Forex Losses ·
Citic Pacific lost 55% of its market value Tuesday after disclosing a board-level executive made unauthorized trades that could cost the firm $2 billion. The Chairman's daughter was removed from her post in the finance department to mitigate damages. (WSJ)
U.K.’s Prudential Woos Backers For $15B AIG Bid ·
U.K. insurer Prudential is reportedly in advanced talks to sell a 20% stake to Chinese and Middle East investors in an effort to raise funding for $15 billion bid for the Asian business of American International Group. (The Times)
Bush Plans Global Summit To Discuss Crisis ·
President George W. Bush announced Saturday he will host a summit of world leaders to discuss the global response to the financial crisis. The summit will likely include the Group of Eight as well as developing countries such as China and India. (WSJ)
China’s CIC To Boost Blackstone Stake ·
China’s sovereign wealth fund, China Investment Corp., said late Thursday it plans to increase its 9.9% stake in Blackstone Group to 12.5%. The firm traded at $9.36 a share Thursday, only about one-third of the pre-initial public offering subscription price CIC paid in June 2007. (Forbes)
Pakistan Turns to China For Cash ·
Pakistan is turning to China for aid, lured by its $1.9 trillion foreign reserves and propelled by its own crumbling economy and that of the U.S. President Asif Ali Zardari flew to Beijing for a four-day state visit seeking $3 billion in aid, to ward off debt default. (Washington Post)
China Tech Suffers From Global Crisis ·
Diversified Chinese technology giant Huawei called off a divestiture that was to presage an IPO. Meanwhile, the stock price of ZTE, the largest publicly-traded Chinese telecom equipment maker, plunged after the government announced its network operators would slash spending. (BusinessWeek)
Beijing Tells CIC To Steer Clear Of Wall Street ·
China's Vice Premier Wang Qishan has reportedly advised the country's sovereign wealth fund, China Investment Corp., not to invest in Wall Street financial institutions until fund management can decipher their complex balance sheets. (Sydney Morning Herald)
OPINION: China Could Stem Global Recession ·
Oxford economist Andrew Graham observes that U.S. and European countries largely binged on credit in response to high savings rates in Asia. He concludes that China, with nearly $2 trillion in reserves, could potentially help the West avert recession by spending more. (The Guardian)
Credit Crisis Jeopardizes China Fund ·
China’s $200 billion sovereign wealth fund reportedly might have $5.4 billion frozen in the failed Reserve Primary Fund, a $62 billion U.S. money market account whose net asset value dropped below $1 in September. (FT)