China's Superbank (eBook)

Debt, Oil and Influence - How China Development Bank is Rewriting the Rules of Finance

Henry Sanderson, Michael Forsythe (Autoren)

eBook Download: EPUB

2012 | 1. Auflage
224 Seiten
John Wiley & Sons (Verlag)
978-1-118-17638-2 (ISBN)

Infos

Inside the engine-room of China's economic growth--the
China Development Bank

Anyone wanting a primer on the secret of China's economic
success need look no further than China Development Bank
(CDB)--which has displaced the World Bank as the world's
biggest development bank, lending billions to countries around the
globe to further Chinese policy goals. In China's
Superbank, Bloomberg authors Michael Forsythe and Henry
Sanderson outline how the bank is at the center of China's domestic
economic growth and how it is helping to expand China's influence
in strategically important overseas markets.

100 percent owned by the Chinese government, the CDB holds the
key to understanding the inner workings of China's state-led
economic development model, and its most glaring flaws. The bank is
at the center of the country's efforts to build a world-class
network of highways, railroads, and power grids, pioneering a
lending scheme to local governments that threatens to spawn
trillions of yuan in bad loans. It is doling out credit lines by
the billions to Chinese solar and wind power makers, threatening to
bury global competitors with a flood of cheap products. Another $45
billion in credit has been given to the country's two biggest
telecom equipment makers who are using the money to win contracts
around the globe, helping fulfill the goal of China's leaders for
its leading companies to "go global."

Bringing the story of China Development Bank to life by
crisscrossing China to investigate the quality of its loans,
China's Superbank travels the globe, from Africa,
where its China-Africa fund is displacing Western lenders in a
battle for influence, to the oil fields of Venezuela.

* Offers a fascinating insight into the China Development Bank
(CDB), the driver of China's rapid economic development

* Travels the globe to show how the CDB is helping Chinese
businesses "go global"

* Written by two respected reporters at Bloomberg News

As China's influence continues to grow around the world, many
people are asking how far it will extend. China's
Superbank addresses these vital questions, looking at the
institution at the heart of this growth.

Autor

HENRY SANDERSON has been a reporter for Bloomberg News since April 2010. Prior to that, he was a reporter for the Associated Press in Beijing and Dow Jones in New York. While at Bloomberg, Sanderson has covered corporate finance, focusing on China's banks, the bond market, and the emergence of the yuan as an international currency. He is a graduate of the University of Leeds (with a BA in Chinese and English literature) and Columbia University (with a Master's in East Asian Studies). MICHAEL FORSYTHE has been a reporter and editor for Bloomberg News since 2000. Prior to that, he was an officer in the U.S. Navy for seven years, serving on ships in the U.S. 7th Fleet. The highlight of his career in Washington was overseeing Bloomberg's coverage of the historic 2008 presidential election. Since returning to Beijing in 2009, Forsythe has focused on policy and politics, with particular emphasis on the international impact of "China Inc." He is a graduate of Georgetown University (with a BA in International Economics) and Harvard University (with a Master's in East Asian Regional Studies).

Inhalt

Preface ix

Acknowledgments xix

Chapter 1 Let 10,000 Projects Bloom 1

The Wuhu Model 4

The Chongqing Model 9

Global Financial Crisis 12

A Town Called Loudi 15

Li's Story 18

"Manhattan" in China 21

Credit Risk in a One-Party State 26

Cracks in the System 29

Chapter 2 Turning a Zombie Bank into a Global Bank 39

A Life in the Party 41

The Princeling Party: The Beginning of State Capitalism 50

Taking Over a Basket Case 55

Transforming CDB from an ATM Machine 58

Developing a Slogan 62

Beating the Commercial Banks 64

Gao Jian: Creating a Market for "Risk-Free" Bonds 68

The West Self-Destructs: The Financial Crisis 72

Moving Beyond Wall Street 75

Chapter 3 Nothing to Lose but Our Chains: China Development Bank in Africa 85

Made in Ethiopia 90

Ethiopia's Zone: Exporting to the West 94

China Africa Development Fund: The State's Private Equity Arm 96

Rising Role of China in Africa 101

Fixed Capital: Western-Style Lending 105

African Tiger: Can Ghana Escape the Resource Curse? 108

Fresh Capital 116

Chapter 4 Risk versus Reward: China Development Bank in Venezuela 123

Default in Bolívar's Country 125

China's Venezuelan Adventure 126

Loans for Oil 132

Cars, Housing, and Gold: Good Business for China 136

Ecuador 139

Russia 140

China in the Backyard of the United States 141

Chapter 5 Funding the New Economy 147

Obama's Dream 151

Default-Free Bond Market 153

Financing China's Global Company: Huawei 157

The Final Frontier: Private Equity 163

Acting as a Gatekeeper 167

Imprint of the State 169

Chapter 6 The Future 175

About the Authors 181

Index 183

Rezensionen

"Despite CDB's central role in developing China's
economy and bankrolling the international expansion of Chinese
companies, China's biggest policy lender rarely makes an
appearance in most English-language chronicles of the
country's economic rise. All the more reason then to praise a
superbly researched new book, written by two Beijing-based
reporters for Bloomberg, in which CDB finally makes a star
turn."

"Lifting the veil on one of global finance's least
understood institutions, the book is essential reading for anyone
seeking insight into the workings of Chinese state capitalism."
-- China Economic Quarterly, March 2013

Reviewer: Erica Downs of the Brookings Institution

"China's economy sometimes seems the work of miracles: three
decades of economic growth, with GDP compounding at an annual rate
of around 10%; the world's highest levels of savings and
investment; vast trade surpluses, which feed the largest
foreign-exchange reserves in history. The financial system has
played a key role in delivering these economic feats, and no single
institution within it has been more important than China
Development Bank. "Understand CDB," Henry Sanderson and Michael
Forsythe write in "China's Superbank," "and you understand the core
of China's state capitalism." -- Wall Street Journal review, Feb
27, 2013

"The book is another useful insight into the workings of the
Chinese state apparatus to come out of the Bloomberg bureau in
Beijing - in July it printed an exposé about the family
finances of Xi Jinping, and its website has been blocked since. One
of the most striking aspects of the CDB story is how the bank
managed to balance being a state-owned company with maintaining
sufficient independence to function as a commercial business." --
Irish Times

"Calls for reform in China tend to come in two kinds - one,
the most common in Chinese social media and popular discussion,
calls for a crackdown on endemic forms of local tyranny, such as
land seizures, black prisons, and bribery. The other, found
among liberals within the Party and expatriate businessmen, talks
about rolling back the growing dominance of the state and
state-owned companies over the Chinese economy, opening more
markets to competition and ending the practices that allow
state-owned (or state-blessed) companies to command cheap access to
capital, natural resources, and land. So far, Xi Jinping's term
looks promising for advocates of the first but the book [China's
Superbank: Debt, Oil and Influence - How China Development
Bank is Rewriting the Rules of Finance] makes a case that land
seizures are at the very foundations of China's model of state
capitalism." -- The Diplomat

Produkt-Details

• Erscheint lt. Verlag: 10.10.2012
• Reihe/Serie: Bloomberg
• Reihe/Serie: Bloomberg
• Sprache: englisch
• Themenwelt: Recht / Steuern ► Wirtschaftsrecht
• Themenwelt: Wirtschaft ► Betriebswirtschaft / Management ► Finanzierung
• Themenwelt: Betriebswirtschaft / Management ► Spezielle Betriebswirtschaftslehre ► Bankbetriebslehre
• Schlagworte: Finance & Investments • Finanz- u. Anlagewesen • Finanzwesen
• ISBN-10: 1-118-17638-3 / 1118176383
• ISBN-13: 978-1-118-17638-2 / 9781118176382