In SVB collapse, Asia sees 1997 all over again

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In: Asia, Finance
A mournful Thai holds a Thai baht note. Photo: NurPhoto via AFP Forum/Anusak Laowilas

To understand the Silicon Valley Bank (SVB) collapse spooking markets, look no further than events in Jakarta. The Indonesian rupiah’s 3.2% drop since February 1 demonstrates how quickly Asia has resigned itself to the fact that the US Federal Reserve isn’t done tightening. Another batch of too-strong-for-Fed-comfort US employment figures in February only increased the […]Continue Reading

Xi’s next crackdown is on local government debt

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In: Asia

As China watchers try to get their heads around the myriad policy shifts at this week’s National People’s Congress (NPC), at least one thing is clear: the bubble just burst for local governments around the nation. In the decade-plus since the 2008-2009 global financial crisis, municipalities engaged in a historic borrowing binge. And in the […]Continue Reading