A few hours after one of my friends in the US posted my last entry on “Hidden inflation” (because of the firewall I cannot post entries in China and must have a friend abroad do it for me), I read a Reuters article with the alarming title “Fuel crisis spreads to the capital”.According to the article:
The mainland’s worst fuel crisis in two years spread to the capital and other inland areas by Wednesday, even as its top refiner pledged to guarantee supplies to a market crippled by the gap between state-set pump prices and record crude oil markets…
…Rationing had already spread along the southeastern coast from the manufacturing hub of Guangdong through Fujian, Jiangsu and Zhejiang, Reuters reported last week. But inland Hunan, Henan and Hubei provinces, were also struggling, domestic media reported.
Perhaps this is scant comfort, but today oil did trade down on the New York Mercantile Exchange to $89.75 per barrel, from Monday’s record high of $93.80.
Michael Pettis is a professor at Peking University's Guanghua School of Management, where he specializes in Chinese financial markets. He has also taught, from 2002 to 2004, at Tsinghua University’s School of Economics and Management and, from 1992 to 2001, at Columbia University’s Graduate School of Business. He is a member of the board of directors of ABC-CA Fund Management Co., a Sino-French joint venture based in Shanghai.
Pettis has worked on Wall Street in trading, capital markets, and corporate finance since 1987, when he joined the Sovereign Debt trading team at Manufacturers Hanover (now JP Morgan). Most recently, from 1996 to 2001, Pettis worked at Bear Stearns, where he was Managing Director-Principal heading the Latin American Capital Markets and the Liability Management groups. He has also worked as a partner in a merchant banking boutique that specialized in securitizing Latin American assets and at Credit Suisse First Boston, where he headed the emerging markets trading team. Besides trading and capital markets, Pettis has been involved in sovereign advisory work, including for the Mexican government on the privatization of its banking system, the Republic of Macedonia on the restructuring of its international bank debt, and the South Korean Ministry of Finance on the restructuring of the country’s commercial bank debt.
Pettis is a member of the Institute of Latin American Studies Advisory Board at Columbia University as well as the Dean’s Advisory Board at the School of Public and International Affairs. He is the author of several books, including The Volatility Machine: Emerging Economies and the Threat of Financial Collapse (Oxford University Press, 2001). He received an MBA in Finance in 1984 and an MIA in Development Economics in 1981, both from Columbia University.
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October, 2007
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