The story of Ray Dalio, Chinese officials and $ 10 ‘amazing weapons’

Economic career changes

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Welcome. This is the first version of FT Asset Management, our updated article that will be in the inbox every Monday morning. The theme is the world of financial management, which is the one that moves and shakes the back of the global industry.

Giving money to China: Should I stay or should I go?

When Ray Dalio he first went to China 37 years ago, gave it to him $ 10 slot machine to officials. They thought they were “miracle weapons”, he recalls. Now, China is competing with the US in high technology with its major technical platforms such as Alibaba, Behavior and Meituan has been favored by the global economic community. Until soon then.

In the last 10 months President Xi JinpingLeadership has begun to break down barriers from education to video games – the speed, energy and energy that has attracted many investors. suddenly. This has removed more than $ 1tn in market value from China from its peak since the recent peak in mid-February, with technical groups leading the decline. This week there were some distractions in international markets such as financial problems to a Chinese manufacturer Evergrande worse.

So what does this mean? foreign traders the second largest economy in the world? Mu this analysis it’s me and Michael Mackenzie of the financial management team, With a friend from Hong Kong Ana and Tabby, We see how big names think of China.

Temporary seller Jim Chanos says Evergrande’s problems could be “too bad“For investors in China than the” Lehman-type “problem because it points to the end of its kind of growth.

In the meantime, A Howard Marks, founder Oaktree Capital Management, comparing China with “the young economist. . . stormy and unstable, but its best years are yet to come “.

Investors in China are now waiting to see how much of the financial burden will be left in Beijing. Adults are doing well. Allowing market groups to apply the risk lesson for investors due to massive losses could lead to a financial collapse that could slow down China’s economy and increase productivity.

“Injections are one of the only ways people learn,” said Dalio of Bridgewater. “Before they convince anyone and now they don’t. That’s fine. A little bite is good, a big bite is not good.”

DWS / PwC: Who’s in charge of the guards?

There have been very few days for German financial companies. Allianz, Europe’s largest insurance company, seems to be getting ready losing a property manager, Jacqueline Hunt, in a study of non-compliance by U.S. Treasury auditors.

Then who was in charge of the highest fund to Group Agreement in Frankfurt he agreed big internal business after feeling “disappointed” with less money than he expected and feeling the devastation on his finances Rope.

But that’s it research entry to Frankfurt DWSenvironmental, social and government standards (ESG) standards that may be most important.

When German and US authorities set up protests at the end of August, following whistleblower complaints Desiree Fixler (formerly chief financial officer at DWS), it sent a chill to the retail industry. The so-called cases washing green – naturalistic claims – the beautiful world of ESG is nothing new. But the DWS survey wrote for the first time that the fund manager should be formally reviewed on the grounds that he embellished his ESG profile.

Now my friend Olaf Storbeck in Frankfurt said special to interpret another distortion in the plot. He reveals it PwC was advising DWS on the settlement at the same time as the Big Four company was investigating and dealing with Fixler’s complaints.

In particular, PwC dismissed Fixler’s controversial claims: that € 459bn of so-called “integrated ESG” items mentioned in the annual DWS report was very appealing.

All of this raises questions about the autonomy of this study, increasing the pressure on the DWS executive Asoka Wöhrmann. And it is another sign that exaggerating the fact that successful businesses can be a business venture.

‘Trad-Fi’ returns to strict crypto rules

China stepped up its crackdown on crypto currencies by announcing Friday that all digital currency transactions are in place it is illegal. But everywhere the cloud around crypto has prevented many asset managers from thinking about electronic devices. This looks like it could change.

In a letter to the international standards set Basel Banking Supervision Committee, the first was said by a Economic Times, groups representing major international banks and asset managers have written a message to top executives: don’t get our hands on the issue of crypto. He told policymakers not to make their crypto standards too strict so that regular players are on the sidelines.

The fundraiser said Basel’s inquiry into how to operate the crypto system was “extremely careless and simple” so that it would not be possible for banks to use digital assets, eliminating the benefits that crypto tech can bring to the financial sector and its customers.

Major financial institutions that ask regulators to have more freedom to practice crypto can raise eyebrows. And cryptocurrency brokers have lost their digital gears in anticipation of Wall Street and City opting for cryptocurrencies.

Traditional financial companies – known as “Trad-Fi” in crypto parlance – have developed a straightforward approach to light rules: trust us and not other guys.

Financial groups have said there is “another quick way to ensure that regulated banks can participate” in crypto to “reduce the risk of unnecessary risks that may occur outside the regulated sector”. This can be trivial.

Smart readers

‘It’s all political’ In the wake of the collapse of Blackstone’s $ 3bn deal for consumer goods manufacturer Soho China, I show how even the most affiliated can deal with China’s political crisis (FT)

Speed ​​animals Hard workers are taking part in insurance because low-cost monitoring and large pensions in the UK and European groups open the door for shareholders (FT)

‘Build, build, build’ Evergrande’s impressive revelation reveals how much of China’s largest sector is being built so much that it threatens to give up a long career as a major driver in China’s economic growth, instead, being a drag (FT)