Hong Kong’s benchmark stock index tumbled the most in three months amid concerns over slumping Chinese property prices, higher money-market rates and political tension between the city and the mainland.
In 1979, as paramount leader Deng Xiaoping reopened China’s depleted economy, he invited some old industrialists who had survived the revolution for a lamb hot pot lunch in a cigarette smoke-shrouded room.
A copy of Manhattan, complete with Rockefeller and Lincoln centers and what passes for the Hudson River, is under construction an hour’s train ride from Beijing. And like New York City in the 1970s, it may need a bailout.
Lying in a Beijing military hospital in 1990, General Wang Zhen told a visitor he felt betrayed. Decades after he risked his life fighting for an egalitarian utopia, the ideals he held as one of Communist China’s founding fathers were being undermined by the capitalist ways of his children -- business leaders in finance, aviation and computers.
Suddenly finance god John Paulson isn’t looking so omniscient. The New York-based hedge-fund manager was the star of the 2008 subprime crisis, capitalizing on Wall Street’s misrepresentations to the tune of $15 billion betting against U.S. mortgages. Now, fraudsters may have taken him in.
Wealthy Chinese investors are turning to “sunshine” private trusts, the prototypes of hedge funds in the communist nation, as the property market cools, stocks slump and bank-deposit rates fail to match inflation.