China Macroeconomics & Academia

Christopher Balding

Macroeconomics

<p>It is frequently said that trying to trade politics is a fools errand, but it does impact the macro-economic direction.  Yesterday, China announced Finance Minister Lou Jiwei would be stepping down in favor of Xiao Jie who managed the tax administration department within the Ministry of Finance.</p><p>We remain skeptical as to the state of the Chinese economy, not just when focused on public finances, but due to industrial policy.  For instance, debt for equity swap appears poorly conceived and failing to address the fundamental problems.  Coupled with state owned enterprise mergers that make inefficient firms even larger while remaining inefficient fail to inspire confidence.</p>

It is frequently said that trying to trade politics is a fools errand, but it does impact the macro-economic direction.  Yesterday, China announced Finance Minister Lou Jiwei would be stepping down in favor of Xiao Jie who managed the tax administration department within the Ministry of Finance.We remain skeptical as to the state of the Chinese economy, not just when focused on public finances, but due to industrial policy.  For instance, debt for equity swap appears poorly conceived and failing to address the fundamental problems.  Coupled with state owned enterprise mergers that make inefficient firms even larger while remaining inefficient fail to inspire confidence.

Haitong Securities Co Ltd (A) (600837 CH)

Sumitomo Mitsui Financial Group (8316 JP)

Mitsubishi UFJ Financial (MUFG) (8306 JP)

Sumitomo Mitsui Financial Group (Sponsored Adr) (SMFG US)

Sumitomo Mitsui Financial Group (Sponsored Adr)

Samsung Fire & Marine Insurance (000810 KS)

Shanghai Pudong Development Bank Co. (600000 CH)

Mitsubishi UFJ Financial (MUFG) ADR (MUFG US)

China Merchants Securities Co Ltd (A) (600999 CH)

China Pacific Insurance (Group) Co., (601601 CH)

China Merchants Securities Co Ltd (H) (6099 HK)

What Is the Impact of Chinese Finance Ministry Reshuffle