Tuesday, April 24, 2018

China establishes rival to World Bank

The Asian Infrastructure Investment Bank (AIIB) has been formally established. The China-backed Asian Infrastructure Investment Bank (AIIB), viewed by some as a rival to the World Bank and Asian Development Bank, was formally established on Friday, according to a statement issued by Beijing. The United States and Japan - the world's...

Yuan Gains as China Foreign Reserves Decline Less Than Forecast

The offshore yuan rose toward a two-month high after China reported a smaller-than-estimated decline in its foreign-exchange reserves, a sign that capital outflow pressures are easing. The stockpile shrank $43.3 billion in September, less than the $57 billion drop predicted in a Bloomberg survey of economists. The hoard, still the...

Trillions in Murky Investments Could Rock China’s Economy

A Shanghai investment firm is offering a fat return of up to 10 percent a year, handily beating both the local stock market and the paltry payouts from bank accounts. It requires a minimum deposit of about $15, making it accessible to just about anyone. Investors can pull out...

China shares end at 14-month lows after late selling frenzy

Chinese shares plunged more than 6 percent to 14-month lows on Tuesday after oil prices dropped again, reviving concerns about global growth and prompting a sell-off in the world's equity markets. Battered by a late selling frenzy, the benchmark Shanghai Composite Index .SSEC ended down 6.4 percent at 2749.79 points,...

Can Regional Connectivity Promote Development Along the New Silk Road?

1000 and 2000 years ago countries along the Silk Road prospered enormously from the trade that passed through on its way between China, Europe and North Africa. Today, however, trade along this historic route has largely dried up as important countries including India, Pakistan and Afghanistan, have many barriers...

China to stick to stable yuan against currency basket, says central bank chief

Zhou Xiaochuan underscores Beijing’s ongoing commitment to keeping currency's value steady. The value of the yuan would remain stable against a basket of currencies, central bank chief Zhou Xiaochuan said on Sunday on the sidelines of the G20 meeting of finance ministers and central bankers in Chengdu. Speaking to the South...

China Aims For Official Gold Reserves At 8500t

China should accumulate 8,500 tonnes in official gold reserves, more than the US, according to Song Xin, President of the China Gold Association, General Manager of the China National Gold Group Corporation and Party Secretary. He wrote this in an opinion editorial published on Sina Finance July 30, 2014. Gold is...

China’s Air-Sea Battle Plan for the South China Sea

A PLA researcher says AEW&C and the J-16 will help China achieve sea & air control over the South China Sea. In an interview with state media last week, Senior Colonel Du Wenlong was asked what China’s “trump card” was for establishing sea and air control over the South China Sea....

International railway promises to revive Silk Road

New town and launch of regular trains to boost modernized trading routes between East and West, Tan Yingzi reports from Chongqing Legend has it that Chinese emperor Han Wu Di (156-87 BC) once looked to the lands west of his vast empire and proclaimed them full of people who placed...

China, Pursuing Strategic Interests, Builds Presence in Antarctica

HOBART, Tasmania — Few places seem out of reach for China’s leader, Xi Jinping, who has traveled from European capitals to obscure Pacific and Caribbean islands in pursuit of his nation’s strategic interests. So perhaps it was not surprising when he turned up last fall in this city on the...

China’s Oil Future

Robust industrial growth and increasing domestic living standards have left China with a nearly insatiable thirst for energy. And oil is playing an integral part in meeting that demand. Although coal remains the chief source of energy, oil fuels China’s transportation, plays a crucial role in industry, and is a...

China Railway links Ethiopia to Red Sea

Nothing could be more symbolic of the decline of Europe and the rise of Eurasia than the construction of a modern railway from the Ethiopian capitol of Addis Ababa to a port on the Red Sea in Djibouti. The Rail line is being built by Chinese Civil Engineering Construction...

China’s Yuan May Draw $1 Trillion on Getting IMF Reserve Status

At least $1 trillion of global reserves will switch into Chinese assets if the International Monetary Fund endorses the yuan as a reserve currency this year, according to Standard Chartered Plc and AXA Investment Managers. People’s Bank of China officials have called for the IMF to include the yuan in...

China’s Renminbi Is Approved by IMF as a Main World Currency

HONG KONG — The Chinese renminbi was anointed as one of the world’s elite currencies on Monday, a milestone decision by the International Monetary Fund that underscores the country’s rising financial and economic heft. The move will help pave the way for broader use of the renminbi in trade and...

China’s debt mountain is growing fast

As China's manufacturing sector stalls, the world's second-largest economy is relying on a more dangerous growth engine: Debt. The Chinese government is encouraging banks to lend and people and businesses to spend. Sound familiar? America did it for years, spurring people to buy homes, cars and just about everything else on...

Thought the TPP was a big deal? China’s rival free trade pact covers half...

This week, the US and 11 other countries signed up to a free trade agreement spanning the Americas and the Asia-Pacific region. The Trans-Pacific Partnership (TPP) allows countries making up 40% of global GDP to lower or abolish tariffs, making trade cheaper and promoting business in all countries involved. But...

Potential U.S. Consequences of China’s Capital Account Liberalization

In recent years, the United States has had positive net international income (e.g., stock dividends and bond coupon payments) despite being a net debtor to China. China, however, has had negative net income, despite being a lender to the United States. Recent policy changes in China could end this...

The IMF just approved the Chinese yuan as a major world currency

What comes next is political. Monday afternoon, the International Monetary Fund’s (IMF) Executive Board voted in favor of allowing China’s currency — the yuan (or renminbi) — to join the ranks of the world’s most elite monies. On Oct. 1, 2016, the yuan will officially be added to the IMF’s Special...

China sets up largest gold fund

A gold sector fund involving countries along the ancient Silk Road has been set up in northwest China's Xi'an City during an ongoing forum on investment and trade this weekend. The fund, led by Shanghai Gold Exchange (SGE), is expected to raise an estimated 100 billion yuan (16.1 billion U.S....

The Renminbi is the second most used currency for cross border payments with China...

SWIFT’s RMB Tracker shows that the RMB is now the second most used currency for cross border payments with China and Hong Kong. In May 2014, 12% of cross border payments with China and Hong Kong were done using the RMB, up 36% from one year ago. The US...

AIIB outlines 5 core areas for investment

The China-led Asian Infrastructure Investment Bank will invest in five major areas during its initial stages-energy, transportation, rural development, urban development and logistics-a top official said on Thursday. The bank will later expand the investment to other areas such as education and healthcare to promote social development, said Chen Huan,...

China-UK Joint Declaration on Building a Global Comprehensive Strategic Partnership for the 21st Century

At the invitation of Her Majesty Queen Elizabeth II of the United Kingdom of Great Britain and Northern Ireland, His Excellency President Xi Jinping of the People's Republic of China undertook a State Visit to the UK from 19 to 23 October 2015. During the visit, President Xi was...

Song Xin: Increase Gold Reserves And Join SDR

The Chairman of the China Gold Association and General Manager and Party Committee Secretary of China National Gold Group Corporation, the latter being China's largest gold mining enterprise, is Song Xin and happens to be one of my favorite commentators in China. This gentleman made waves in July 2014...

Soros Says China’s Economy Looks Like the U.S. Before the Crisis

Billionaire investor George Soros said China’s debt-fueled economy resembles the U.S. in 2007-08, before credit markets seized up and spurred a global recession. China’s March credit-growth figures should be viewed as a warning sign, Soros said at an Asia Society event in New York on Wednesday. The broadest measure of...

IMF’s Executive Board Completes Review of SDR Basket, Includes Chinese Renminbi

The Executive Board of the International Monetary Fund (IMF) today completed the regular five-yearly review of the basket of currencies that make up the Special Drawing Right (SDR). A key focus of the Board review was whether the Chinese renminbi (RMB) met the existing criteria to be included in...

Chinese Central Bank Vows to Expand Use of IMF Reserve Currencies

The Chinese yuan was included in the IMF's elite basket of reserve currencies last year. BEIJING—China’s central bank Governor Zhou Xiaochuan said the government will make efforts to expand the use of the International Monetary Fund’s basket of reserve currencies in its domestic economy. Mr. Zhou said China will use both...

China’s Pivot to Putin’s Friends

The Moscow-Beijing partnership is stalling. But Xi is winning over the Russian president’s inner circle with favorable loans and sweetheart energy deals. When Gennady Timchenko — a Russian oligarch and close friend of President Vladimir Putin — was appointed chair of the Russian-Chinese Business Council, an association of more than...

Philippines open for business with China, says finance minister

Opportunities for the two countries to cooperate on infrastructure, says Carlos Dominguez. The Philippines' new government plans to court Chinese investment to fund an ambitious infrastructure programme, the latest sign of warming ties between the two nations that have been at loggerheads over territorial claims in the South China Sea. “The...

China starts work on $50 bln Asian Infrastructure Investment Bank

China has begun preparations to set up a multilateral bank to fund infrastructure projects in Asia, the finance ministry said on Friday, looking to tap into demand for infrastructure growth as regional economies develop. In a statement, the ministry said the planned Asian Infrastructure Investment Bank would have a capital...

IMF, ADB add to supporters for China-led development bank

BEIJING (Reuters) - China received critical support from the International Monetary Forum and Asian Development Bank on Sunday for its goal of establishing a new Chinese-led multilateral lender, adding to a growing wave of endorsements that has worried the United States. Leaders of the IMF and ADB, speaking at a...

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