financial policies

China’s BRI Bailouts Draw Mixed Reception

Several reports published over the past two weeks shine a light on China’s lending practices abroad, in the context of an ongoing international debt crisis along parts of the BRI. The reports trace the evolution of BRI loans and...

China Eases Restrictions on Foreign Investors

Despite China’s launching of a body to screen foreign investment in Chinese companies, Beijing has now announced it will relax its control over qualified foreign institutional investers (QFII), from Xinhua: Compared with...

Diet Risks at a Government Finance Feast

From Caijing Magazine: Financial crisis? What financial crisis? Local governments across China simply can’t fathom the fuss. They’re not starved of credit. In fact, they’re enjoying a veritable financing feast....

China to Ease Securities Tie-up Rules – Geoff Dyer

From China is planning to introduce rules by the end of the year to allow a handful of foreign investment banks to invest in joint ventures with local securities firms, according to senior government officials and banking executives. …Under the revised rules, foreign investment banks would be allowed to own up to 33 per […]

China’s Inflation Policy Stirs The World – Thomas Palley

From Asia Times: China’s government recently announced that inflation hit a 10-year high of 6.5% in August. This increase in inflation is directly related to global trade imbalances, yet China is trying to control inflation without addressing that problem. That carries two consequences. First, it is doubtful this strategy can work, which likely signals rising […]

China’s Rate Increase Targets Food Prices – Jamil Anderlini

From Financial Times: China’s central bank raised interest rates for the second time in less than a month on Friday in an attempt to rein in soaring food prices, excessive bank lending and bubbles in the property and stock markets. The People’s Bank of China lifted the one-year benchmark deposit rate by 27 basis points […]

No Threat Of Foreign Monopoly In Any Industry – Report – Jiang Wei

From China Daily: The country does not face an imminent risk of monopoly by foreign companies in any industry, according to the China Foreign Investment Report 2007 released by the Ministry of Commerce. Wang Zhile, director of the Multinational Enterprise Research Centre affiliated to the Ministry of Commerce, made the observation in an essay for […]

Beijing to Set Out Finance Reform at Party Conclave – Richard McGregor

From Financial Times: China will set its priorities for finance reform for the next five years at a top-level party conclave next week expected to focus on rural banking and an enhanced role for the country’s largest financial holding company. The so-called finance work committee meeting, to be chaired by Wen Jiabao, the premier, has […]

China to Maintain `Stable Currency Policy’ in 2007, Zhou Says – Wing-Gar Cheng and Ying Lou

From Bloomberg: China’s central bank, under pressure from the U.S. and other Group of Seven nations to make the yuan more flexible, will in 2007 pursue a “stable currency policy” to promote economic growth. The People’s Bank of China “will continue to strengthen and adjust financial control mechanisms, execute a stable currency policy, improve foreign […]

Report on China Is Notably Softer on Currency Valuation – Steven Weisman

From The New York Times: The Bush administration, softening its tone of criticism toward China, reported to Congress on Tuesday that the Chinese had made strides in revaluing their currency, but that the progress was “considerably less than is needed.” The muted tone, in contrast with a finding more than six months ago, came in […]

Act your age, Beijing – Guardian Unlimited

From Guardian Unlimited: It is hardly a surprise that the large American economic delegation to China has returned with little to show. Even at the final press conference, while the US treasury secretary, Henry Paulson, said China would make its currency more flexible but gave no timetable; the Chinese deputy prime minister, Wu Yi, did […]

China Unveils Rules For Foreign Banks – Reuters

From Reuters: China on Wednesday released rules governing the operations of foreign banks once the country fully opens its doors to them in line with its WTO commitments. In a document released by the official Xinhua news agency, China said foreign-funded banks and joint-venture lenders needed to set aside at least 1 billion yuan ($127 […]

China’s Forex Reserves Exceed $1,000 Billion – Peter Garnham

From Financial Times: China’s foreign currency reserves have exceeded $1,000bn for the first time, according to reports yesterday on the country’s state television network. The announcement had been expected since China’s State Administration of Foreign Exchange announced last month that its reserves hit $987.9bn at the end of September. China’s forex reserves became the largest […]

5 Years After China Entered WTO, Bumpy Road to Banking Freedom – Melissa Thomas

From Financial Times: December 11 is the fifth anniversary of China’s entry into the World Trade Organisation and the deadline for Beijing to fulfil its final commitments. These include opening up retail banking to foreign banks for the first time. In preparation, the China Banking Regulatory Commission (CBRC) in August circulated draft Administrative Measures for […]

China should marshal its reserves to do good – Jeffrey Garten

From Financial Times: Any day now, China’s foreign exchange reserves will reach the $1,000bn mark. That is one-fifth of the world’s re¬≠serves, an amount greater than Japan’s enormous holdings and more than the reserves of Germany, France, Italy and Canada combined. China’s cushion of cash and investments would finance more than a year’s worth of […]

China’s Reserves Near $1 Trillion – WSJ

As China’s foreign-exchange reserves and money supply growth continue to increase, pressures on interest rates and exchange rates are mounting. Read the story from The Wall Street Journal: China’s foreign-exchange reserves, the world’s largest, rose to just below $1 trillion at the end of September, while money-supply growth eased, according to data issued Friday. As […]

Morgan Stanley Becomes the First Foreign Bank Doing Renminbi Business in China

Morgan Stanley will become the first foreign bank being allowed to do renminbi business in China, Financial Times reported. In order to protect local banks from foreign banks, which are usually much more competitive and market-oriented, Chinese monetary authorities banned foreign banks from offering renminbi-denominated products. Morgan Stanley will be qualified to apply for a […]

China Allows Rise in Currency Value – Keith Bradsher

From the New York Times: China’s government allowed the country’s currency to rise in value past the level of 7.9 to the dollar for the first time today, reaching another in a series of daily highs. Though it has not said so publicly, the government evidently has decided to permit the currency, considered around the […]



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