China has long been a mystery to foreign investors. Deeply involved in trade and commerce since the ancient days of the Silk Road, China has continued to maintain the appearance of closed economic borders and, even past these hardened gates, undeniable risk. Like any investor, you've probably been tempted to look at the prospects, and you've probably been met with a barricade of warnings about corruption and internal strife that quickly bounces you away. In the case of this sleeping dragon, knowing isn't half the battle, the battle is in knowing.
I want to share with you my source for what is really going on globally - I get it from my friends at STRATFOR. They've got a unique way of measuring past events and analyzing geopolitical foundations to project the future. It's not investment advice - it's the geopolitical information you need to understand a region before you evaluate any investment opportunities.
This week I'm including an article with STRATFOR's take on recent developments in Chinese banking restructuring. Give it a read and sign up for their free intelligence reports here.
John Mauldin, Editor
Outside the Box
China: Lending Restrictions and Beijing's Predicament
China Banking Regulatory Commission chief Liu Mingkang at the Asian Financial Forum in Hong Kong on Jan. 20
Liu Mingkang, head of the China Banking Regulatory Commission (CBRC), said in an interview Jan. 20 that several Chinese banks had been asked to restrain their lending after proving to have inadequate capital reserves. Chinese media reports claimed that new bank loans so far in January have risen…