Dr Shirley Yu , Chinese economist, argued in her recent article that, the fall of Chinese private real estate giant Evergrande aligns with President Xi Jinping’s stated vision for the nation.
Meanwhile, the rules dictating China’s use of capital have changed during the Xi Jinping era. China’s most prized industrial companies have been thriving on an exceedingly high-leverage model to fast balloon the assets – and liabilities – on the balance sheet. Their ambitions for expansion, backed by the state financial houses, went unbridled. But when the flow of financial resources towards them was no longer guaranteed, they all faced an inevitable fall. After all, it is sill the state banks that control finances in China.
Mr Xi’s vision for a new model of economic justice should realign state capital to serve not only as liability holders, but shareholders when it comes the debt-ridden traditional industrial companies. The existing model enriches private individuals to the detriment of the state.
Evergrande is not the first – and won’t be the last – private giant to disintegrate. We have thus far witnessed the restructuring and re-nationalisation of Anbang and HNA by the state. The central government has proven it has the will, the confidence and, now, the experience, to manage Evergrande’s inevitable demise.
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Dr Shirley Yu (于泽), is a former CCTV 9 anchor, an experienced moderator and author. She holds a PhD in Economics from Peking Univeristy and started her career with investment bank Merrill Lynch in the US.
Shirley Yu wanted to be the “voice” of China’s new economic language and this prompted her to join China Central Television (CCTV) News in 2009, where she hosted the morning news bulletins, daily Wall Street market news wrap-ups.
In July 2015, amidst the China-induced global financial turmoil, Shirley moderated a panel in New York City with Dr. Alan Greenspan, Dr. Larry Summers and Steve Forbes on Chinese economy and the world, which has achieved impressive success. Since then, she has been a frequent moderator for numerous global forums, including the Boao Forum for Asia, United Nations World Investment Forum, Committee of 100 Conference, Asia Pacific Financial Conference, Australian institute of Company Directors Conference, just to name a few.
At present, Shirley continues as a business entrepreneur and independent financial host to connect China and Chinese private businesses with the world. Fluent in both English and Mandarin Chinese, Shirley is also a noted author, with three books to her name as of this time.