China's big spenders on infrastructure must generate better returns

China's big spenders on infrastructure must generate better returns

Fixed capital formation stands at a record high of 46 per cent of gross domestic product in China. A free bottle of Scotch goes to the first person who can show me any country with a higher ratio.

Sunday, 2 June, 2013, 3:59am 2 comments

City's small-cap firms to set to see flood of capital from China

Beijing's long-standing plans to allow mainlanders to invest overseas is expected to release large capital inflows into small-cap companies in Hong Kong as retail investors on the mainland seek to take advantage of lower valuations in Hong Kong markets, a veteran Chinese banker said.

21 May 2013 - 5:04am

Slowing down the yuan

Inflows of US$197 billion into the mainland economy have been questioned by economists at financial institutions. Photo: Reuters

Derivatives traders are scaling back bets that the yuan will appreciate, as record capital inflows prompt mainland authorities to investigate possible fraud relating to export data and to require banks to boost their holdings of foreign exchange.

17 May 2013 - 4:06am

U.K. banks told to raise an extra £25b

The Bank of England recommended Wednesday that the nation's lenders increase their capital buffers by 25 billion pounds ($37.9 billion) by the end of the year to ensure they can cover potential losses and keep lending in the event of future crises. Photo: AP

Banks need to set aside more money to cover bigger potential losses on commercial real estate and from the euro area, possible fines for mis-selling and stricter risk models, the Bank of England said following a report by the Financial Services Authority.

28 Mar 2013 - 5:52am

Deutsche Bank's €2b loss is 8 times analysts' estimates

Litigation and restructuring charges have pushed Deutsche Bank into a fourth-quarter loss of €2.17 billion. Photo: Reuters

The bank's co-chief executives, Juergen Fitschen and Anshu Jain, are restructuring operations and bolstering capital levels, the lowest among Europe's biggest investment banks, in their first year in charge, to help meet stricter banking rules.

1 Feb 2013 - 5:38am

No easy answer to how much fixed capital China requires

If there's one question bothering China analysts at the moment, it has to be: 'How much investment is too much?'

Naturally, there are two opposing views, and as ever, the gap between them is a mile wide.

6 Jun 2012 - 12:00am

China's rapid growth risks destroying economic value

The way most people tell it, China's recent economic performance has been a resounding success story.

To many, the way the mainland has maintained its rapid growth rate despite the slump in the developed world is little short of miraculous.

12 Jul 2010 - 12:00am

School costs pricing HK out of market for talent

Debenture costs at some of the city's leading international schools have hit the stratosphere and beyond. As we report today, the Independent Schools Foundation Academy has set what is believed to be a record price for an international school with its new issue of corporate debentures costing a whopping HK$1.6 million.

6 Dec 2009 - 12:00am

Obstacles to change

Professional worriers in Hong Kong recently worried themselves when the State Council endorsed Shanghai's ambitions to become a financial centre. They need not have been troubled. A closed capital account and concerns about the rule of law remain in the way.

30 Apr 2009 - 12:00am

BOOK (1867)

Das Kapital

by Karl Marx

16 Nov 2008 - 12:00am

Fixed asset investment data shows rare creative talent

'Beijing's fixed asset investment growth to slow in second half'

SCMP headline, June 28

It wasn't a big item in yesterday's paper, or a big surprise. Once the Olympic Games are over, you would naturally expect fixed asset investment in Beijing to slow down after the big building boom of getting ready for the Olympics.

29 Jul 2008 - 12:00am

A costly new capital junta's other crisis

As village tracks with bone-jarring depressions suddenly release you on to silky-smooth, six-lane, concrete-topped roads that could double as airport runways, you can tell you are nearing Myanmar's remote new capital.

30 Sep 2007 - 12:00am

An investment and a headache for HK parents

Amanda Price investigates debenture options for international schools

No two methods of capital investment in an international school in Hong Kong are alike.

10 Jun 2007 - 12:00am

New steps to rein in capital spending

Beijing is launching a nationwide campaign to halt investment projects that fail to meet its industrial policy goals as it steps up its battle to control fixed-asset investment growth.

In a circular to regional governments and central agencies, the State Council said it needed to act decisively and introduce effective measures to control growth in capital spending.

30 Jun 2006 - 12:00am

Gap in statistics credibility keeps pace with capital misallocation

HOW INTERESTING THAT statisticians in Beijing should be so exact about the growth of fixed asset investment that they can publish firm figures to the right of the decimal when they cannot even agree about the figures to the left of the decimal.

19 Jun 2006 - 12:00am