The Great Debate

China’s bailout of Taiwan is good for the region

By Wei Gu
August 26, 2009

wei-gu.jpg– Wei Gu is a Reuters columnist. The opinions expressed are her own —

If market performance is anything to go by, Taiwan is the biggest beneficiary of China’s economic stimulus.

Market plunge makes Beijing’s exit harder

August 21, 2009

wei-gu.jpg– Wei Gu is a Reuters columnist. The opinions expressed are her own —

The Chinese leaders have a dream. The banks pump trillions of yuan into the market, which props up asset prices, creates new demand, and gets the economic engine roaring again. Then, just before inflation starts to surge, the money is drained out of the system.

China cuts Treasury holding to fund foreign deals

By Wei Gu
August 20, 2009

wei-gu.jpg– Wei Gu is a Reuters columnist. The opinions expressed are her own —

Please don’t call it a liquidity crunch, but it rather looks as though China might have had to sell a sliver of its vast hoard of U.S. Treasury paper to fund its private sector’s big overseas foray.

China’s banks, running hard to stand still

August 14, 2009

wei-gu.jpg– Wei Gu is a Reuters columnist. The opinions expressed are her own —

Chinese banks are like enthusiastic runners on an accelerating treadmill. The weakening economy means poor lending decisions are threatening to catch up with them, but the banks are sprinting ahead by expanding their loan books ever faster. They cannot keep this up for ever.

Rebalance China’s two financing legs

July 30, 2009

Wei Gu– Wei Gu is a Reuters columnist. The opinions expressed are her own —

Chairman Mao believed the economy needs to run on two legs, but when it comes to corporate financing, China is advancing in a series of giant hops. Its banks are flooding the market with credit, while equity markets actually supply less capital as a proportion of the whole.

Bet on small firms to lead China global foray

By Wei Gu
June 17, 2009

Wei Gu–Wei Gu is a Reuters columnist. The opinions expressed are her own–

Chairman Mao used to say the truth is always kept by the minority.

A little-known private Chinese machinery company’s bid for a GM marque has been sneered at by even the patriotic Chinese media, but the deal could succeed where mightier plays like Chinalco’s for Rio Tinto have failed.

China’s U.S. debt overhang needs Chinese cure

June 3, 2009

Wei Gu — Wei Gu is a Reuters columnist. The opinions expressed are her own. —

When U.S. Treasury Secretary Timothy Geithner told students at Peking University that China’s holdings of U.S. Treasury bonds were safe, his answer drew loud laughter from the audience.

Time for China to act on foreign listings

May 20, 2009

wei_gu_debate– Wei Gu is a Reuters columnist. The opinions expressed are her own –

China has talked about plans to allow foreign companies to float on its domestic stock markets for at least a decade, but that’s all there has been: talk.

Economic stimulus Beijing-style: I treat, you pay

By Wei Gu
March 12, 2009

wei_gu_debate– Wei Gu is a Reuters columnist. The opinions expressed are her own. –

Beijing may criticize American consumers for spending money they do not have, but the truth is Chinese leaders do the same, they just make sure it doesn’t end up on their account.

China Inc. takes stock after overseas buying spree

By Wei Gu
January 22, 2009

wei_gu_debate– Wei Gu is a Reuters columnist. The opinions expressed are her own –

Abundant liquidity, government support and a strong yuan fueled Chinese companies’ overseas buying spree.