The latest culture as recommended by our staff

Peter Hoskin

Pete suggests


Why did the Chinese government pull the plug on the Citigroup deal?

Monday, 14th January 2008

The Wall Street Journal is reporting that the Chinese government has vetoed the proposed $2bn investment by the state-owned China Development Bank in Citigroup. There are three possible explanations for this. First, the Chinese government could have got worried that this investment would spark a protectionist backlash in Congress and decide that it wasn’t worth the hassle and the potential risk. Second, after previous investments in Barclays and Blackstone have underperformed, Beijing might just have become more wary. Finally, there’s a chance that internal politics stymied the deal. Anyway, there’s little doubt that this is a blow to those who thought that sovereign wealth funds would inject liquidity into the system staving off the problems that are coming down the road.  

   Previous Back to Trading Floor   Next 

Blogs: Americano | Coffee House | Clive Davis | Melanie Phillips | Stephen Pollard

Actions: Print this article   |   Email to a friend   |   Permalink   |   Comment

Post this entry to:   del.icio.us | Digg | Newsvine | NowPublic | Reddit

Comments

Post a comment


Your comment:*

Your name:*

Your email address:*
(We won't publish this)

*Required information

Please click the button only once - your comment will not be published immediately

The Spectator Parliamentarian Awards
Weekly update

City Life

Eric Ellis 29/12/2008

Lessons for life from the Crash of ’73

David Young 12/12/2008

Thought for the day

David Wilbourne 12/12/2008

Investment

Richard Northedge 12/12/2008
Spectator recommends

Book Farm and Cottage Holidays Direct

Save money on your farm and cottage holiday by booking direct with the owner. We have a range of places...


Spectator classifieds

ROME CENTRE

PORTA METRONIA, ROME Standing high on the top of one of the seven hills of Rome- the Coelian- this unique

City Breaks. ROME and PARIS

ROME and PARIS: over 350 holiday rentals apartments listed: visit  www.romanreference.com  and  www.parisreference.com or call +39 0648 903612.

Jewellery. RUFFS (Estd. 1904).

Goldsmiths by Design Welcome to Ruffs!  You have found a company of Goldsmiths that specialises in the manufacture, amongst other