Fort Dearborn Income Common
China’s Great Wall of worry: The top ten causes for concern
The strength of Japanese equities The below graph reflects the strong performance of Japanese equities over Chinese and Korean equities since the election of Japan’s new Prime Minister, Shinzo Abe, in November last year. Hopes of ending deflation in Japan have led to a strong performance in Japanese markets, while Japan’s neighbors, China and Korea, […]
Will slowing foreign investment cool consumption in China?
China’s waning foreign investment The below graph reflects an ongoing decline in the percentage of foreign direct investment (FDI) in China as a percent of China’s gross domestic product (GDP). You can see the dramatic increase in FDI that occurred in China in 1992, when China began to create its “special economic zones,” which served […]
Chinese exports will face more competition from Japan and Korea
Chinese yuan appreciation The Chinese yuan has appreciated approximately 3% per year since the launch of exchange rate reform in 2005, appreciating from 8.25 to 6.15 versus the U.S. dollar. The Chinese Central Bank “pegs” its exchange rate to the U.S. dollar—though it has allowed its currency to appreciate against the U.S. dollar more aggressively […]