For global macro traders, or funds looking at currency values, we conduct local analysis to understand the dynamics of the Chinese economy through carefully designed custom research. This includes:
1) Shadow Banking. Where is the money flowing outside of formal bank channels?
2) Currency flows. Capital flight is a significant issue in China. How is money escaping the country? Service payments? False trade invoicing?
3) Bank loans. Western banks have an estimated $1 trillion exposure to the Chinese economy. How safe are these loans?