Chinese President Xi Jinping is in a busy state of mind, exactly what China needs these days. Within the first half of the year, about 60,000 bureaucrats had been arrested in Xi’s investigations of corruption. China was almost close to a crisis in 2012 mainly because of corruption and greed.
However, changes are evident as people are getting scared now. Zhou Yongkang, former security chief is now under house arrest as a Communist Part body conducts an investigation, considering his $15 billion wealth which will be reimbursed to the state. Similar cases are emerging, bringing such illegal activities to the highest levels of attention. China’s public enemy number one now is corruption.
Additionally, Xi is making efforts in liberalizing China’s financial markets, spreading securitization and deepening capital markets. China will do this through 3 ways, including municipal bonds, asset management companies, and securitized debt. All of these are designed to convert short-term loans into long-term securities which are tradable and will allow for price discovery.
