It is no secret that China has been facing serious problems related to its mounting debt levels. The growing pile of bad loans, especially from the country’s corporate sector, has raised red flags at many of the world’s leading research institutions.
In a year marked by political change across the globe, the closing weeks of 2016 delivered yet another moment of significant upheaval. Following weeks of public protest, South Korea’s parliament voted to impeach President Park Geun-hye on December 9, while the first public hearing to kick off the trial was scheduled for January 3, 2017.
Much has been made of Europe’s struggling banking sector since the turn of the decade. In October, for instance, the International Monetary Fund (IMF) reported that across the world, banks that were in charge of approximately $12 trillion of assets will continue to remain vulnerable, even if a global economic recovery takes hold.
Across the world, governments are increasingly acknowledging the need to raise the levels of investment in infrastructure projects within their respective countries.
The start of 2016 could scarcely have been worse for China. A collapsing stock market, a weakening yuan and mounting capital outflows all combined to rattle markets the world over, raising genuine concern over the ability of the world’s second-biggest economy to continue delivering strong economic growth.
If it seems as if the world has changed, it is because it has. Economic growth, for example, lags behind the levels reached before the 2007/2008 financial crisis even in developed countries. The need for governments to step in with proactive fiscal policies to kick start their economies has never been greater.
Trade is the growth engine that empowers the world’s economies. Although circumstances such as the shortage of available trade finance to SMEs limit its operation, other factors such as technology, global governance and education are energizing its transformation into a vehicle carrying the world on an exciting journey toward shared global prosperity.
Zurich-headquartered Credit Suisse is moving away from its traditional business of investment banking as it expands its wealth-management activities.
The commodities “super cycle” generated by mainly Chinese demand came to a screeching halt midway through 2014. The pain has been acutely felt by especially US oil and gas companies, which, crushed by their operating losses and high interest costs on debt, have been seeking Chapter 11 protection in record numbers.
According to the World Federation of Exchanges, China’s stock markets currently account for 10 percent of the total market capitalisation of all exchanges in the world, and hold an even greater share in terms of market turnover.