The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookiesbefore using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.
BANKING

China banking woes mount as growth slows and more lockdowns loom

Xi Jinping wants a smooth path to his re-appointment as president in November. But his zero-Covid policy, slowing growth and bank runs in central China mean that path is looking increasingly bumpy.

COVID-19 outbreak in Shanghai

“For the rest of the year, everything will be carefully managed and manicured. The 20th Congress is just too important.”

George Magnus – referring here to an upcoming November 2022 meeting of the Chinese Communist Party, where president Xi Jinping should be anointed president for an unprecedented third term in office – knows China better than most.

A former chief economist for UBS Investment Bank, Magnus is also an associate at Oxford University’s China Centre and author of ‘Red flags: Why Xi’s China is in jeopardy’.

George Magnus, UBS Investment Bank.jpg
George Magnus, UBS Investment Bank
Photo: Justin Canning

In normal conditions, Magnus’s assessment would be a dead cert.

Xi is setting himself up as president-for-life, Magnus says, which means there must be no nasty surprises in the months ahead. So no pandemic spikes in big rich cities or the poor hinterland; no growth fears or bank runs; no social instability; and absolutely no flirting with recession.

Oh, hang on a minute.

Actually, China faces all those issues in capital letters – and more besides.

Amid


You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?