Is China’s Cash Crunch Returning?

August 28, 2013, 7:00 PM

Is China’s Cash Crunch Returning?

Is it time for a return of China’s cash crunch?

A spike in money-market rates in June raised fears about the stability of China’s financial sector, pushed equity markets sharply lower, and had investors running for cover. A peek at the overlooked role of China’s Ministry of Finance in the money markets suggests another scare might not be far away. The People’s Bank of China has the lead role in managing funds in China’s financial market, but the movement of tens of billions of yuan in tax receipts and public spending in and out of the financial system also has a major impact, and sometimes pulls in the opposite direction of the central bank. Read more of this post

Yet to Buy Into Abenomics, Wives Cut Husbands’ Pocket Money

August 29, 2013, 3:47 PM

Yet to Buy Into Abenomics, Wives Cut Husbands’ Pocket Money

By Kana Inagaki

Japanese men hoping to reap the benefits of the economic upturn with an increase in their monthly spending cash will be disappointed to find this won’t be happening anytime soon. It seems their wives, who typically control family purse strings in Japan, have yet to buy into Abenomics. According to an online survey of 3,300 individuals carried out by Orix Bank Corp. in July, the average monthly spending allowance of men fell by 11% compared with last year’s survey, falling to Y30,468 ($310). Read more of this post

Innovation isn’t an idea problem, but rather a biased recognition problem

Innovation Isn’t an Idea Problem

by David Burkus  |   8:00 AM July 23, 2013

When most organizations try to increase their innovation efforts, they always seem to start from the same assumption: “we need more ideas.” They’ll start talking about the need to “think outside the box” or “blue sky” thinking in order to find a few ideas that can turn into viable new products or systems. However, in most organizations, innovation isn’t hampered by a lack of ideas, but rather a lack of noticing the good ideas already there. It’s not an idea problem; it’s a recognition problem. Read more of this post

Is Bias Fixable?

Is Bias Fixable?

by Nilofer Merchant  |  10:16 AM August 28, 2013

“As a brown woman, your chances of being seen and heard in the world are next to nothing,” he said. “For your ideas to be seen, they need to be edgier.” He paused, as if to ruminate on this, before continuing. “But if you are edgy, you will be too scary to be heard.” This was the advice I got from a marketing guru when I asked for his help with titling my second book. I was confused, as I couldn’t figure out how this answer had any relationship to my original question. I walked — somewhat dazed — to my next meeting and repeated what I’d just heard. In return, I received only blank stares. It wasn’t that these people affirmed his point of view; it’s that they stayed silent. My confusion gradually turned to fear. Was someone finally doing me a service by telling me … The Truth? For months after hearing this “… you’ll never been seen” message, I was a mess seeing his “truth” into every missed opportunity or unexpected obstacle. Read more of this post

Love of creation is what enables entrepreneurs to withstand the fear that comes with entrepreneurship

Startups are a young person’s game: Leasing a soul to build better companies

ON AUGUST 28, 2013

Institutional investment in tech entrepreneurs dates back half a century, and during that period the average age of funded entrepreneurs has plummeted. The first Silicon Valley entrepreneurs were in their middle age. Today a typical early stage venture capital investment, $1 million or more, is pooled from pension funds, charities, endowments and sovereign wealth funds and entrusted to a 20-something with zero work experience, no real understanding of how to manage people or capital, no ability to command a room, garner press, or even put together decent financials. Read more of this post

Asia: Storm defences tested

August 28, 2013 7:23 pm

Asia: Storm defences tested

By David Pilling and Josh Noble

Emerging markets are less vulnerable to shocks than they were in the late 1990s


These days it seems practically everything is made in Asia. Everything, that is, apart from economic crises. For the moment, at least, those can still be produced in the US. Ever since Ben Bernanke, chairman of the US Federal Reserve, hinted in May that there may be an end in sight to the policy of aggressive monetary easing, emerging markets have been severely tested. Talk of tapering the Fed’s purchase of $85bn a month in government bonds from as early as September has pushed up long-term US interest rates. That in turn appears to have triggered a partial reversal of the carry trade in which investors borrow in dollars to purchase higher-yielding assets, often in emerging markets. Currencies and stock markets around the world, especially in countries with current account deficits financed by fickle capital inflows, have tumbled. Read more of this post

Mao-era thrift shunned for good life on credit

August 28, 2013 5:00 pm

China’s consumers take eagerly to credit

By Simon Rabinovitch in Shanghai

ChinaBorrowers Guiyang Debt

A few years after finishing university, Jack Dai thought he had scored the holy trinity of success for a young Chinese man: a government job, an apartment and a wife. But he had not counted on one additional factor, less visible from the surface, that soon drove a wedge between him and his conception of the good life. To buy his Shanghai house, Mr Dai, 30, took out a hefty mortgage. Monthly repayments now swallow up half his salary. Plus he has the other expenses of Chinese middle-classdom – overseas holidays, shopping excursions, movies and restaurants. Read more of this post

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