China`s Inflation and Hong Kong`s Deflation
... between January and November 2003,
China has been experiencing mild inflation.
Alongside the rising CPI, China has also
been experiencing a shortage of some
raw materials, coal and electricity. The
prices of minerals, such as copper, iron
and aluminium, have also jumped by as
much as 5 percent. All ...
The Difference Between Currency Manipulation and Monetary Policy
... First, it is important to note that the real (i.e., inflationBank of China (PBC, the central bank of China) has preadjusted) exchange rate matters for international trade, not
vented rapid appreciation of the renminbi (RMB) by purthe nominal exchange rate. Manipulation of real exchange
chasing U.S. ...
Former HKMA Official Plans Chinese Bond Fund for Institutions
... assets said in a statement. Eastfort is waiting for approval from Hong Kong’s
Securities and Futures Commission to start operations.
Ng plans to start funds that invest in Chinese bonds traded both domestically and
internationally in anticipation that global institutions will buy more yuan-denominat ...
Summary - WikiLeaks
... lending spree that has averaged over a trillion yuan ($146.5 billion) per month in the first
nine months of this year. However, while the pace and magnitude of this lending has
stoked fears that China may be laying the groundwork for an imminent banking crisis of
its own, China could potentially del ...
China, the US, and Currency Issues
... than it was on a yen bloc in the 1980s.
• A guess: It will take the RMB a decade
to surpass the ₤ & CHF and rival the ¥.
• and much longer to rival the €, let alone the $.
• Nevertheless, that is the direction it is headed.
• And the $ is likely to continue losing share to all
the other internationa ...
RMB revaluation will serve China`s self
... as evidenced by continued sharp gains thus far in 2004 regarding the key macro indicators
listed above. In the first 3 months of 2004, foreign exchange reserves are up US$36.8
billion, averaging slightly more than a US$12 billion gain per month or US$144 billion at an
annualized rate. Meanwhile, as ...
... settlement of trade with foreign
Limited initially to 5 cities (Shanghai, Guangzhou,
Shenzhen, Zhuhai, Dongghuan), and to the trade of
Chinese residents with Hong Kong, Macao and ASEAN
This established the first legal framework for using RMB
to settle current account transactions.
20150817 - Rand Refinery
... The rand stumbled to a session low of R12.8895 against the dollar, the weakest it has been since December 2001. It
also fell to an all-time low of 20.1071 versus the pound, according to Thomson Reuter’s data.
Meanwhile, the International Monetary Fund (IMF) hailed the move taken by China and issued ...
Why the renminbi has to rise to address imbalances
... domestic product. Chinese government spending has also increased domestic demand via major rises in infrastructure
investment and building low income housing.
But while these two shifts are necessary to reduce global imbalances, they are not enough. For that, exchange rates
must also adjust.
The dol ...
private credit team white paper
... innovate and as demand for healthcare facilities including old-age care centres increases with an ageing
population. Healthcare spending is expected to rise as a share of GDP.
Continuing urbanization and rising household wealth should continue to drive demand for private
housing and associated urban ...
... Financial volatility is set to remain elevated but
systemic risk will be contained. First, Eurozone
hiccups and currency carnage in emerging markets
put pressure on the Chinese export model. Second,
China’s internal transformation is kicking in (see
table 2) and the banking system and private sector ...
Development and utilisation of financial derivatives in China
... started up its RMB forward exchange settlement and sales business, as the first bank
authorised to do so, marking an important milestone in the development of the Chinese
(b) RMB foreign exchange swaps
RMB exchange swap transactions were introduced in April 2006. The National Im ...
Exchange Rates, Wages, and International Adjustment: Japan and
... U.S. imports from China unless RMB appreciates
(withdrawn October 2006, but new threat in 2007)
-Section 3004 of U.S. Public Law 100-418: U.S. Secretary of
Treasury must report twice a year on whether countries with
trade surpluses are “manipulating” their currencies. Timothy
Geitner’s congressional ...
ATTACHMENT B: Greater Toronto Chinese
... administrative status in the southern province of Guangdong. Under economic liberalization
policies of the 1980s carried out by reformist leader Deng Xiaoping, the city became China’s
first - and ultimately the most successful - Special Economic Zone (SEZ).
Shenzhen continues to be one of the fastes ...
2007-08 Global Financial Collapse: Assessing Whether the Crisis
... 2009 when the Recession reached its heights.8 China has
also pushed for policies that increase the RMB’s network
externalities, actively encouraging its use in international
trade. For instance, in 2009 and 2010, China began allowing private sector trades with members of the Association of Southeast ...
Client Letter 2Q 2015
... Given the still-unhealthy valuations present in
the Shanghai and Shenzhen markets, the
Chinese government’s attempts to prop up the
markets are unlikely to end well. At best it
will allow some retail investors to exit, but it
will be essentially replacing such retail money
with public funds.
Internationalization of the renminbi
Since the late-2000s, the People's Republic of China (PRC) has sought to internationalize its official currency, the Renminbi (RMB). In 2004, Hong Kong resident could purchased yuan without required underlying up to 20,000 per day. The RMB Internationalization accelerated in 2009 when China established dim sum bond market and expanded Cross-Border Trade RMB Settlement Pilot Project, which helps establish pools of offshore RMB liquidity. In 2013, the RMB was the 8th most traded currency in the world and the 7th most traded in early 2014. By the end of 2014, RMB has ranked 5th as the most traded currency, according to SWIFT's report, at 2.2% of SWIFT payment behind JPY (2.7%), GBP (7.9%), EUR (28.3%) and USD (44.6%). Currently (February 2015) RMB is the second most used currency in trade financing, and reach the ninth position in forex trading. The Renminbi Qualified Foreign Institutional Investor (RQFII) quotas were also extended to other five countries - the UK (extended 15 October 2013), Singapore (22 October 2013), France (20 June 2014), Korea (18 July 2014), Germany (18 July 2014), and Canada (8 November 2014), each with the quotas of ¥80bn except Canada and Singapore (¥50bn). Previously, only Hong Kong was allowed, with a ¥270bn quota. The launch of Shanghai-Hong Kong Stock Connect (SSE and HKEx) in November 2014, embarked China into the next stage of internationalization. In January 2015 Chinese Premier, Li Keqiang, announced a planned second Stock Connect linking Shenzhen and Hong Kong exchanges. The China's RMB internationalization and foreign exchange (FX) reforms are evolving rapidly and full convertibility is expected over the next couple of years.