1. Geopolitical significance of Chinese investments

2. Concentrated on Chinese Outward FDI (less
on Trade nexuses)
Total size of assets - $35 Trillion (300% of GDP) & 97% Domestic 2016 aggregate data

3. relatively small in regards to domestic assets, foreign claims have taken a northern trend since 2011 growing at 200%

4. china is now part of bis locational banking statistics (November 2016 & Reporting 2015q4 onwards), opening access to quarterly data within reporting area. this facilitates looking at china’s cross-border lending
Cross-border claims in 2017q2: $970 billion (8th & ahead of sui, lux, esp & ita)

5. (trade ⇔ Financial motivation) ⇔ banking {financial connections go far beyond trade linkages}

7. bis lbs + ceic ⇒ cross-sectional relationship of china’s fdi stocks & banking claims (% of GDP)
amount of cumulative fdi is greater when china has a large bilateral exposure on cross-border lending

8. banking system is now the biggest, but suffers from spillover effects
CONCLUSION
banking system is now the biggest, but suffers from spillover effects
From borrowers’ side Chinese potential spillovers depend on direct banking channels + trade linkages + monopsony on commodities prices
current low incidence of emdc sovereign defaults despite recent heavy external borrowing as a result of mis-measurement since defaults and/or arrears on Chinese loans are hard to come by

9. himanshu prakash damle pfpac himanshudamle@pfpac.net