Wall Street Is Finally Getting Access to China. But for How Long?

wall street is finally getting access to china but for how long scaled

For decades, American banks have been eager to expand their business in China, the world’s second-largest economy. They’re finally getting their way — just as a spiraling corporate debt crisis threatens to rock the country’s financial system and China’s central government takes a stronger hand with big businesses. In July, Citigroup became the first foreign bank to win approval to open a custody business in China, essentially acting as a bank for Chinese investment funds. In August, JPMorgan Chase got permission from the Chinese authorities to take full ownership of…

Goldman Sachs Wins Approval to Buy Out Partner in China

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Goldman Sachs has won approval to take full ownership of a joint venture in China, enabling the Wall Street firm to expand its operations in the country at a time when Beijing has made moves to open up its financial sector. The go-ahead from the China Securities Regulatory Commission for Goldman Sachs to buy out Beijing Gao Hua Securities, its local partner, comes as Beijing tries to make good on a pledge it made in 2017 to allow foreign investment banks to fully own their China operations. “This marks the…

Why Wall Street Backs China Despite Beijing’s Tighter Grip

why wall street backs china despite beijings tighter grip

This year has been unsettling for Chinese business. The ruling Communist Party has gone after the private sector industry by industry. The stock markets have taken a huge hit. The country’s biggest property developer is on the verge of collapse. But for some of the biggest names on Wall Street, China’s economic prospects look rosier than ever. BlackRock, the world’s biggest asset manager, urged investors to increase their exposure to China by as much as three times. “Is China investable?” asked J.P. Morgan, before answering, “We think so.” Goldman Sachs…

Who’s Buying Evergrande?

whos buying evergrande

A look inside Robinhood during meme-stock mania The trading app Robinhood has grown explosively, gone public and, for good measure, is now getting into crypto wallets. But internal exchanges between company managers revealed in a new legal filing — featuring Robinhood’s C.E.O., Vlad Tenev — highlight the tensions between fast growth and consumer protection. A class-action lawsuit brought by Robinhood users alleges that the company was negligent during a period of extreme market volatility in late January, knowing it had insufficient capital to handle all the trading by new and…

Inquiry finds World Bank officials, including now-I.M.F. chief, pushed staff to inflate China data.

inquiry finds world bank officials including now i m f chief pushed staff to inflate china data

WASHINGTON — An investigation into manipulation of an annual World Bank report has found that Kristalina Georgieva, the bank’s former chief executive, who now leads the International Monetary Fund, directed staff to alter data to placate China. The findings of the investigation, which was conducted by the law firm WilmerHale at the request of the bank’s ethics committee, raised questions about the judgment of Ms. Georgieva during her time at the World Bank and underscored the pressure that the bank has been under to accommodate China, its third-largest shareholder after…

Why Evergrande’s Debt Problems Threaten China

why evergrandes debt problems threaten china

Every once in a while a company grows so big and messy that governments fear what would happen to the broader economy if it were to fail. In China, Evergrande, a sprawling real estate developer, is that company. Evergrande has the distinction of being the world’s most debt-saddled property developer and has been on life support for months. A steady drumbeat of bad news in the recent weeks has accelerated what many experts warn is inevitable: failure. The ratings agency Fitch said this week that default “appears probable.” Moody’s, another…