Joe Zhang

Joe Zhang is chairman of China Smartpay Group and the author of "Inside China's Shadow Banking: The Next Subprime Crisis?".
Joe Zhang
Joe Zhang is chairman of China Smartpay Group and the author of "Inside China's Shadow Banking: The Next Subprime Crisis?".

Latest from Joe Zhang

Macroscope | As the state tightens its grip on the economy, will China reject capitalism again?

Beijing has turned decisively towards more state control of the economy in the last decade, and public support for tighter regulations means capitalism may be in trouble.

2 Jan 2019 - 10:32PM

Beijing has turned decisively towards more state control of the economy in the last decade, and public support for tighter regulations means capitalism may be in trouble.

As the state tightens its grip on the economy, will China reject capitalism again?
Macroscope | Why China’s online lending crisis makes liberalisation of bank interest rates more urgent

As many of China’s online lenders fold, a key question is whether they should continue to exist alongside banks subject to interest rate controls.

14 Nov 2018 - 10:49PM

As many of China’s online lenders fold, a key question is whether they should continue to exist alongside banks subject to interest rate controls.

Why China’s online lending crisis makes liberalisation of bank interest rates more urgent
Opinion: Why China’s financial system is safer than you may think
Will China really be able to arrest its runaway credit growth?
As China grows, equal opportunity and social mobility are fast becoming a cruel lie
All signs point to an economic slowdown in China, but warnings of a credit crisis are too simplistic
How a fear of inflation is driving bitcoin’s popularity in China
Why worries about a sharp slide in the renminbi are overblown
China’s looming debt crisis is no cause for alarm, says PBOC expert
Mainland China’s perpetual QE and its many losers
Beijing needs to turn off the credit tap

China's shadow banking is opaque, huge and fast-growing. In the past year, it has managed to cause two interbank crises, a few small-scale bank runs and several high-profile defaults and near-defaults of bonds.

3 Jun 2014 - 1:04AM

China's shadow banking is opaque, huge and fast-growing. In the past year, it has managed to cause two interbank crises, a few small-scale bank runs and several high-profile defaults and near-defaults of bonds.

Beijing needs to turn off the credit tap
State sector is China's secret sauce

It is too early to say if China has achieved economic success, even after 36 years of consistently high growth.

30 May 2016 - 5:01PM

It is too early to say if China has achieved economic success, even after 36 years of consistently high growth.

State sector is China's secret sauce
Letting the air out of the bubbles

Despite the familiar refrain from analysts these last few years, China's real estate and credit bubbles have not burst. While I, too, am worried, I have not been brave enough to venture a prediction until now: I think the bubble will gradually deflate over a decade or two, rather than burst dramatically.

3 Apr 2014 - 1:00AM

Despite the familiar refrain from analysts these last few years, China's real estate and credit bubbles have not burst. While I, too, am worried, I have not been brave enough to venture a prediction until now: I think the bubble will gradually deflate over a decade or two, rather than burst dramatically.

Letting the air out of the bubbles
What exchange rate policy?
11 Mar 2014 - 5:09AM
What exchange rate policy?
Chinese lenders ready to fight back if profitability is threatened

Within just six months, Yu E Bao, the partnership between the mainland's Alibaba and fund house Tianhong Asset Management, raised 250 billion yuan (HK$318 billion) from millions of little guys to invest in money market funds and treasury bonds.

11 Feb 2014 - 1:57AM

Within just six months, Yu E Bao, the partnership between the mainland's Alibaba and fund house Tianhong Asset Management, raised 250 billion yuan (HK$318 billion) from millions of little guys to invest in money market funds and treasury bonds.

Chinese lenders ready to fight back if profitability is threatened
Reform is a tall order

In an essay published in the Financial Times eight years ago, I said China's private sector was in the shadow of the state.

20 Dec 2013 - 1:36AM

In an essay published in the Financial Times eight years ago, I said China's private sector was in the shadow of the state.

Reform is a tall order
Bank on the banks

Every investor likes to think that he or she is a contrarian. The truth is that they are anything but.

9 Nov 2013 - 3:44AM

Every investor likes to think that he or she is a contrarian. The truth is that they are anything but.

Bank on the banks
Lending in the shadows

Twice a year I travel to Jingmen in central China to visit my parents and siblings. Last week, I was there on a new mission: to review the work of my sisters as shadow bankers.

24 Oct 2013 - 3:46AM

Twice a year I travel to Jingmen in central China to visit my parents and siblings. Last week, I was there on a new mission: to review the work of my sisters as shadow bankers.

Lending in the shadows
Why Chinese stocks perform poorly

China's equity market has been around for 20 years, and its performance has been very disappointing. Since its birth in 1994, the Hang Seng China Enterprises Index, the so-called H-share index, has gone up only 44 per cent, though the Chinese gross domestic product has grown almost tenfold in nominal terms. So why the huge discrepancy?

27 Jul 2013 - 4:18AM

China's equity market has been around for 20 years, and its performance has been very disappointing. Since its birth in 1994, the Hang Seng China Enterprises Index, the so-called H-share index, has gone up only 44 per cent, though the Chinese gross domestic product has grown almost tenfold in nominal terms. So why the huge discrepancy?

Why Chinese stocks perform poorly
The real problem behind China's shadow banking
Time to pour cold water on talk of 'hot money'

One evening in December 2011, as chairman of Wansui Micro Credit Company in Guangzhou, I received a call from the Guangzhou city government's finance office. On the line was a Mr Liao who sternly reminded me that, as of that day, we had exceeded our credit ceiling by about 15 million yuan (HK$18.23 million at exchange rates then) and I had three days to bring our loan portfolio back beneath it.

2 Jul 2013 - 5:28AM

One evening in December 2011, as chairman of Wansui Micro Credit Company in Guangzhou, I received a call from the Guangzhou city government's finance office. On the line was a Mr Liao who sternly reminded me that, as of that day, we had exceeded our credit ceiling by about 15 million yuan (HK$18.23 million at exchange rates then) and I had three days to bring our loan portfolio back beneath it.

Time to pour cold water on talk of 'hot money'
The quick buck economy

Thirty years ago this month, I was a graduate student at the People's Bank of China in Beijing. The average monthly wage on the mainland was about 40 yuan at that time. I was lucky to be paid 52 yuan. But my money would always run out before the next pay cheque arrived.

24 Sep 2013 - 3:54AM

Thirty years ago this month, I was a graduate student at the People's Bank of China in Beijing. The average monthly wage on the mainland was about 40 yuan at that time. I was lucky to be paid 52 yuan. But my money would always run out before the next pay cheque arrived.

The quick buck economy
Alibaba's Yuebao online funds vendor and its rivals will help savers but won't hurt the banks
Why a recession would be good for China

China’s economic growth slowed in the final three months of last year to 7.7 per cent, the weakest quarter since 2009, but still way too fast to allow for the restructuring that the country urgently needs.

30 May 2016 - 5:01PM

China’s economic growth slowed in the final three months of last year to 7.7 per cent, the weakest quarter since 2009, but still way too fast to allow for the restructuring that the country urgently needs.

Why a recession would be good for China
Time to pull the trigger

Beijing's carrot and stick approach to managing the economy has generally delivered more of the latter over the years.

8 Oct 2013 - 3:28AM

Beijing's carrot and stick approach to managing the economy has generally delivered more of the latter over the years.

Time to pull the trigger