“China will turn from an exporter of goods to an exporter of capital, with significant consequences, of course, for the world,” says Stephen Jen, who runs Eurizon SLJ Capital, a hedge fund and advisory firm in London.
That could resemble the petrodollars that flowed from oil-exporting countries in the 1970s, which ended up financing a huge, and tragically unsustainable, borrowing spree by Latin American nations.
ELMAT:
Note that Hong Kong fate was decided because China need that financial entrepot firm under their control.
China would not be interested in building infrastructure. (like the ones we built together in Africa) They would lending money to companies and countries to build them at their own risk.
China will need that income to be able to support its older population that is growing fast.
I laugh when TJ think he is the one who understand China...
The China strategy is ntohing different from the British Empire, the American heydays and Japan in the 80s when they had more capital that what to do it at home.
Why I am interested on that?
Brazil is a commoditty economy and the Brazilian currency is a commodity currency.
Australia knows the Chinese need them. The Chinese wanted Australian dollars and commodities but the Australians have not been cooperating.
A Slice of the Action
To gain exposure to China’s rapid economic expansion, global investors generally have had to buy proxy assets such as the Australian dollar, commodities, or a small range of Hong Kong-listed Chinese shares.
China’s bond market opening gives them direct exposure. It also provides an alternative to Japanese government bonds and other low- or negative-yielding sovereign debt, sa
China Opens Its Bond Market—With Unknown Consequences for World
Chris Anstey Enda Curran Bookmark November 23 2020, 3:30 AM November 24 2020, 4:23 AM (Bloomberg Markets) --
China’s 2001 entry into the World Trade Organization transformed the global economic order. Yet even as China became the factory to the world, its financial system remained a closed shop, with strict controls on the flow of mo
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