China Economy Forum

[Beidou2020]

More lenders get green light to import gold

China is moving to gain more pricing power in the global gold market, allowing more banks to import the metal and starting an international board at the Shanghai Gold Exchange.

Shanghai Pudong Development Bank Co Ltd and China Merchants Bank Co Ltd said that they received approval earlier this month to import gold. Reuters had reported that Standard Chartered Plc has also been cleared for imports, although the bank declined to comment.

With these three, China would have 15 banks that may import gold.

According to the Shanghai Gold Exchange, the platform for all physical trade in China, SPD is among the top 10 trading members so far this year and CMB is among the top 20.

Meanwhile, the international board of the gold exchange, located in the China (Shanghai) Pilot Free Trade Zone, will start trading as early as September, an exchange source said. Although no official announcement has been made, "all parties involved have started preparing. Of course we hope the more participants the better", said the source.

The move will also help China establish a yuan-denominated gold pricing system, a note from CMB said.

"More participants mean more channels for gold trading, and international players may join in, deepening the China gold market's integration into the global market," said Yang Fei, a gold investment analyst in Shanghai.

The exchange plans to launch three physically backed gold contracts on the FTZ international board, which aims at becoming a price-discovery center.

Analysts and market insiders said all these moves will help China's gold importers gain more pricing power in the global market.

According to statistics from the World Gold Council, China became the world's largest gold buyer in 2013.

"A market's pricing power depends on its activity and accessibility. The more players it involves, the more say it has," said Albert Cheng, managing director for the Far East at the WGC.

At present, pricing power lies largely with the London Bullion Market Association.

Xu Luode, chairman of the exchange, said earlier this year that as the world's biggest consumer and producer of gold, China should have its own pricing benchmark. The international board will support that goal.

 

[cirr]

CAP1400 preliminary safety review approved

09 September 2014
by World Nuclear News

The Chinese nuclear regulator has approved the preliminary safety analysis report of the CAP1400 reactor design following a 17-month review.

An artist's impression of how two CAP1400 units would look at Shidaowan (Image: SNPTC)

Approval of the review was formally announced at a 2 September meeting in Beijing organized by China's National Nuclear Security Administration (NNSA). More than 180 people attended the meeting, including representatives of the environmental protection department of the Nuclear and Radiation Safety Centre, the Beijing Nuclear Safety Evaluation Centre, Suzhou Nuclear Safety Centre, State Nuclear Power Technology Corporation (SNPTC) and the China Nuclear Power Research Institute. NNSA's safety review for the CAP1400 began in March 2013 and has involved more than 260 experts, 30 meetings to discuss it and responding to more than 5000 questions, according to SNPTC. As a result of the review, more than 1000 work orders were drawn up.

The CAP1400 is an enlarged version of the AP1000 pressurized water reactor developed from the Westinghouse original by SNPTC with consulting input from the Toshiba-owned company. As one of China's 16 strategic projects under its National Science and Technology Development Plan, the CAP1400 is intended to be deployed in large numbers across the country. The reactor design may also be exported.

Site preparation is already underway for two demonstration CAP1400 units at Huaneng Group's Shidaowan site in Shandong province. The pouring of first concrete is expected to take place by the end of the year. This site is part of a larger Rongcheng Nuclear Power Industrial Park, at which the prototype HTR-PM small modular reactor is already under construction. Another 19 of the 210 MWe units could follow.

Huaneng is China's largest power generation company. The reactors at Shidaowan will be its first nuclear generation assets.

 

[Beidou2020]

China has the ACP1000 nuclear reactor with 100% IP rights.
That is the nuclear reactor that can be exported without getting approval from any foreign company.

To export the CAP1400, you need to get approval from Westinghouse since China don't own the full IP rights.

 

[Edison Chen]

China has vigorously pushed reform and economic restructuring despite pressures on its economy, Premier Li Keqiang said at a forum in Tianjin on Wednesday, pledging continued efforts to remake the economy.

Instead of resorting to strong stimulus or easing credit, the government is proceeding with reforms, having taken new steps toward reform that have resulted in a rising number of jobs, Li said while delivering a keynote speech at the opening ceremony of the World Economic Forum (WEF)'s eighth Annual Meeting of the New Champions, also known as the Summer Davos Forum, in North China's port city of Tianjin.

Fluctuations seen in some economic indicators for July and August following a flurry of targeted measures have stirred concerns over the durability of the economic recovery, with some market watchers calling for universal policy changes to revitalize the economy.

The premier, however, dismissed such possibilities in remarks on two consecutive days.

Speaking to entrepreneurs in Tianjin on Tuesday, he stressed that the country will continue its prudent monetary policy and targeted economic policies regardless of any data fluctuations.

The performance of the economy, as measured by employment, still saw signs of stabilization.

Between January and August, the unemployment rate held steady at around 5 percent across 31 major cities, during which time more than 9.7 million urban jobs were created, a jump of more than 100,000 over the previous year, Li said Wednesday.

"We believe the actual economic growth rate remains within the proper parameters, even if it turns out to be slightly higher or lower than the 7.5 percent target."

Over the four months ahead, continued efforts are expected to stabilize growth while pushing forward with broad-based reforms, said the premier, who has also vowed to step up scientific and technological innovation to help boost sophistication and creativity within the economy.

As the economic aggregate continues to expand, Li said, growth will mean more jobs and there will be a greater tolerance of fluctuations.

Klaus Schwab, executive chairman of the WEF, also gave a speech at the opening ceremony, saying the record number of attendees drawn by this year's Summer Davos showed rising confidence in the Chinese market among business executives across the world.

The premier's remarks on fostering quality growth were decidedly thought-provoking, James Z. Li, a forum participant, told reporters immediately after the conclusion of the opening ceremony.

On top of that, the premier's focus on technological innovation is of particular importance for Chinese companies seeking opportunities both at home and abroad, said Li, chairman and CEO of E. J. McKay & Co, Inc, an independent investment banking firm in Shanghai.

Commenting that the premier's speech is inspiring, Rodrigo Pérez-Alonso, director of Planning and Evaluation at Telecomunicaciones de Mexico, told the Global Times on Wednesday that Mexican companies will explore investment opportunities in the Chinese market in fields such as energy, lured by the long-term prospects for China's economy.

Speaking at a session during the Summer Davos on Wednesday, Li Daokui, director of the Schwarzman Scholars Program at Tsinghua University, also said the property market and the export sector, the two growth engines of the Chinese economy, are set to gradually fade away with new drivers that include private consumption and a shift to a greener economy taking over as the major powerhouses in the future.

Such a transition needs to be coupled with fundamental institutional reforms, said Li, also a former adviser to the People's Bank of China, the country's central bank.

Still some economists pointed out near-term risks, focusing particularly on the need for proper management of the real estate sector to ensure the stability of the overall economy.

While the monetary policy has stayed largely unchanged, eased controls on the real estate sector should be considered to prevent a systemic collapse, Xu Hongcai, director of the Department of Information under the China Center for International Economic Exchanges (CCIEE), a Beijing-based think tank, told the Global Times on Wednesday.

In addition, local governments suffering amid a faltering economic recovery who have seen their misery compounded by a widespread correction in the property market need to be given enhanced fundraising capabilities, Xu said, cautioning against any shock therapy in pushing reforms.

Li vows to remake economy - Global Times

 

[TaiShang]

China has vigorously pushed reform and economic restructuring despite pressures on its economy, Premier Li Keqiang said at a forum in Tianjin on Wednesday, pledging continued efforts to remake the economy.

Instead of resorting to strong stimulus or easing credit, the government is proceeding with reforms, having taken new steps toward reform that have resulted in a rising number of jobs, Li said while delivering a keynote speech at the opening ceremony of the World Economic Forum (WEF)'s eighth Annual Meeting of the New Champions, also known as the Summer Davos Forum, in North China's port city of Tianjin.

Fluctuations seen in some economic indicators for July and August following a flurry of targeted measures have stirred concerns over the durability of the economic recovery, with some market watchers calling for universal policy changes to revitalize the economy.

The premier, however, dismissed such possibilities in remarks on two consecutive days.

Speaking to entrepreneurs in Tianjin on Tuesday, he stressed that the country will continue its prudent monetary policy and targeted economic policies regardless of any data fluctuations.

The performance of the economy, as measured by employment, still saw signs of stabilization.

Between January and August, the unemployment rate held steady at around 5 percent across 31 major cities, during which time more than 9.7 million urban jobs were created, a jump of more than 100,000 over the previous year, Li said Wednesday.

"We believe the actual economic growth rate remains within the proper parameters, even if it turns out to be slightly higher or lower than the 7.5 percent target."

Over the four months ahead, continued efforts are expected to stabilize growth while pushing forward with broad-based reforms, said the premier, who has also vowed to step up scientific and technological innovation to help boost sophistication and creativity within the economy.

As the economic aggregate continues to expand, Li said, growth will mean more jobs and there will be a greater tolerance of fluctuations.

Klaus Schwab, executive chairman of the WEF, also gave a speech at the opening ceremony, saying the record number of attendees drawn by this year's Summer Davos showed rising confidence in the Chinese market among business executives across the world.

The premier's remarks on fostering quality growth were decidedly thought-provoking, James Z. Li, a forum participant, told reporters immediately after the conclusion of the opening ceremony.

On top of that, the premier's focus on technological innovation is of particular importance for Chinese companies seeking opportunities both at home and abroad, said Li, chairman and CEO of E. J. McKay & Co, Inc, an independent investment banking firm in Shanghai.

Commenting that the premier's speech is inspiring, Rodrigo Pérez-Alonso, director of Planning and Evaluation at Telecomunicaciones de Mexico, told the Global Times on Wednesday that Mexican companies will explore investment opportunities in the Chinese market in fields such as energy, lured by the long-term prospects for China's economy.

Speaking at a session during the Summer Davos on Wednesday, Li Daokui, director of the Schwarzman Scholars Program at Tsinghua University, also said the property market and the export sector, the two growth engines of the Chinese economy, are set to gradually fade away with new drivers that include private consumption and a shift to a greener economy taking over as the major powerhouses in the future.

Such a transition needs to be coupled with fundamental institutional reforms, said Li, also a former adviser to the People's Bank of China, the country's central bank.

Still some economists pointed out near-term risks, focusing particularly on the need for proper management of the real estate sector to ensure the stability of the overall economy.

While the monetary policy has stayed largely unchanged, eased controls on the real estate sector should be considered to prevent a systemic collapse, Xu Hongcai, director of the Department of Information under the China Center for International Economic Exchanges (CCIEE), a Beijing-based think tank, told the Global Times on Wednesday.

In addition, local governments suffering amid a faltering economic recovery who have seen their misery compounded by a widespread correction in the property market need to be given enhanced fundraising capabilities, Xu said, cautioning against any shock therapy in pushing reforms.

Li vows to remake economy - Global Times

These reforms are designed to ensure that China never gets caught up in middle income trap.

Kudos to the officials who ignore the myriad of Western OPs on how China should handle its own economy and doing reforms at its own speed, based on its own dynamics and requirements.

Listening to the West always ends up in disaster. That's historically proven.

 

[cirr]

UK says to sign trade deals worth 2.4 billion pounds with China

LONDON Fri Sep 12, 2014 2:57am BST

Britain's Chancellor of the Exchequer George Osborne poses with China's Vice Premier Ma Kai (R) outside 11 Downing Street in London September 11, 2014.

CREDIT: REUTERS/SUZANNE PLUNKETT

(Reuters) - Britain said on Friday that it was about to sign commercial deals with China worth more than 2.4 billion pounds, as Chancellor George Osborne prepared to meet China's Vice Premier Ma Kai in London.

Full details of the prospective transactions were not immediately available. But Britain's finance ministry said they included a $1 billion joint venture with China related to a Malaysian oil terminal, and a 200 million-pound project to develop nursing homes and vocational training schools in China.

Britain will also refund visa costs for up to 25,000 Chinese visitors on organised tours between 2015 and 2017.

Osborne is meeting Ma as part of an annual Anglo-Chinese economic and financial dialogue, which last year took place in Beijing.

Britain's Conservative-led government has made an effort to boost exports to China since 2010, in part because growth remains slow in many of Britain's main export markets in continental Europe.

Last year China was Britain's seventh-biggest goods export market, accounting for 12.4 billion pounds of exports - roughly 4 percent of the total. Britain imported 33.4 billion pounds of goods from China over the same period.

On Thursday the Bank of England said it had granted a wholesale branch licence to China's largest lender, Industrial and Commercial Bank of China, allowing it to become the first Chinese bank to open a new branch in more than 50 years.

Britain has been keen to attract Chinese banks and offshore trade in the yuan to bolster its position as the world's main centre for foreign exchange trading.

In March, Britain and China signed an agreement to set up a clearing service for renminbi trading in London, which is competing with Luxembourg, New York, Paris and Frankfurt to become the top Western offshore yuan centre.

Osborne has also said he wants to see London explore connections with Chinese stock exchanges, and in June announced that Britain will provide guarantees for transactions denominated in renminbi.

(Reporting by David Milliken; Editing by Mark Trevelyan)

UK says to sign trade deals worth 2.4 billion pounds with China| Reuters

 

[Raphael]

UK says to sign trade deals worth 2.4 billion pounds with China| Reuters

Britain said on Friday that it was about to sign commercial deals with China worth more than 2.4 billion pounds, as Chancellor George Osborne prepared to meet China's Vice Premier Ma Kai in London.

Full details of the prospective transactions were not immediately available. But Britain's finance ministry said they included a $1 billion joint venture with China related to a Malaysian oil terminal, and a 200 million-pound project to develop nursing homes and vocational training schools in China.

Britain will also refund visa costs for up to 25,000 Chinese visitors on organised tours between 2015 and 2017.

Osborne is meeting Ma as part of an annual Anglo-Chinese economic and financial dialogue, which last year took place in Beijing.

Britain's Conservative-led government has made an effort to boost exports to China since 2010, in part because growth remains slow in many of Britain's main export markets in continental Europe.

Last year China was Britain's seventh-biggest goods export market, accounting for 12.4 billion pounds of exports - roughly 4 percent of the total. Britain imported 33.4 billion pounds of goods from China over the same period.

On Thursday the Bank of England said it had granted a wholesale branch licence to China's largest lender, Industrial and Commercial Bank of China, allowing it to become the first Chinese bank to open a new branch in more than 50 years.

Britain has been keen to attract Chinese banks and offshore trade in the yuan to bolster its position as the world's main centre for foreign exchange trading.

In March, Britain and China signed an agreement to set up a clearing service for renminbi trading in London, which is competing with Luxembourg, New York, Paris and Frankfurt to become the top Western offshore yuan centre.

Osborne has also said he wants to see London explore connections with Chinese stock exchanges, and in June announced that Britain will provide guarantees for transactions denominated in renminbi.

 

[Europa]

http://online.wsj.com/articles/icbc-granted-u-k-wholesale-banking-license-1410458247

LONDON—The Bank of England has authorized the Industrial and Commercial Bank of China Ltd. 601398.SH +0.56% to open a wholesale branch in the U.K., a spokeswoman for the central bank said Thursday.

The confirmation comes ahead of the sixth annual U.K.-China Economic and Financial Dialogue summit on Friday. U.K. Prime Minister David Cameron and Chancellor of the Exchequer Chief George Osborne met visiting Chinese Vice Premier Ma Kai in Downing Street for discussions ahead of the event on Thursday.

Britain's government has been working to attract Chinese banks to the U.K. in an effort to increase bilateral trade and establish London as a major offshore hub for trading in the Chinese currency.

The wholesale banking license will allow ICBC to handle investments and assets, but it won't be able to offer retail services, such as savings, mortgages, and other loans.

Nobody was immediately available at ICBC's London office to comment.

 

[AZADPAKISTAN2009]

Trying to woo China and seperate Russia tch tch tch

 

[sicsheep]

LONDON: Britain on Friday (Sep 12) said it would be the first country outside China to issue yuan-denominated bonds, as London seeks to become a Western hub for trading in the Chinese currency.

The UK Treasury said the government plans to issue the bond in the coming weeks, subject to market conditions, without giving an exact amount or other details.

"This will be the first non-Chinese issuance of sovereign RMB (yuan) debt and will be used to finance Britain's reserves," it said in a statement. "Up to now, Britain has only held reserves in US dollars, euros, yen and Canadian dollars, so today's announcement signals the RMB's potential as a future reserve currency."

British politicians have been scrambling to make London China's Western financial hub as Beijing loosens its tight regulations on international trading in the yuan.
Last year the yuan overtook the euro as the world's second-largest trade currency after the dollar, and analysts predict its role is set to grow as China's economy, already the world's second-largest, expands.

In response, British authorities have embarked on a charm offensive to attract Chinese capital in the City of London, with yuan volumes more than doubling in the year to July 2014.

- AFP/fl


Britain plans first yuan bond outside China - Channel NewsAsia

 

[mike2000]

Trying to woo China and seperate Russia tch tch tch

Not really, for us, business is business, politics is politics....

 

[Europa]

Harper OKs China-Canada FIPA deal

It's official: Prime Minister Stephen Harper has approved the controversial Canada-China Foreign Investment Promotion and Protection Agreement (FIPA) today.

In a short, two-paragraph news release, International Trade Minister Ed Fast said the deal was now ratified. It will come into force on October 1, 2014, and will be effective for 31 years, until 2045.

The original investment protection deal -- which treaty law expert Gus Van Harten said could be in violation of the Canadian Constitution -- was quietly signed in 2012 in Vladisvostok, Russia.

 

[ChineseTiger1986]

Not really, for us, business is business, politics is politics....

Sure, even the de-dollarization also means "business" in Britain.

UK to launch world’s first renminbi bond outside China

 

[LeveragedBuyout]

Harper OKs China-Canada FIPA deal

It's official: Prime Minister Stephen Harper has approved the controversial Canada-China Foreign Investment Promotion and Protection Agreement (FIPA) today.

In a short, two-paragraph news release, International Trade Minister Ed Fast said the deal was now ratified. It will come into force on October 1, 2014, and will be effective for 31 years, until 2045.

The original investment protection deal -- which treaty law expert Gus Van Harten said could be in violation of the Canadian Constitution -- was quietly signed in 2012 in Vladisvostok, Russia.

I wonder if the agreement covers IP rights protections, or just "IP rights protections" (wink, wink).

 

[senheiser]

China Trade Surplus Hits New Record High in August
China Balance of Trade | 1983-2014 | Data | Chart | Calendar | Forecast

China trade surplus widened to USD 49.83 billion in August of 2014 from USD 28.5 billion a year earlier, beating market forecasts. The surplus hit a record high for the second straight month in August, as exports grew robustly while imports fell.

Exports rose 9.4 percent year-on-year to USD 208.5 billion in August, lower than a 14.5 percent increase in July, but better than market expectations. Sales to the United States rose 11.4 percent, those to the European Union increased 12.1 percent and shipments to the ASEAN countries advanced 13 percent. In contrast, sales to Japan fell1.7 percent and exports to South Korea decreased 12.6 percent.

Imports dropped 2.4 percent year-on-year to USD 158.6 billion in August after falling 1.5 percent in the previous month. Purchases from the United States, Japan, South Korea fell by 3.1 percent; 5.3 percent; 4 percent, respectively. Meanwhile, imports from the EU rose 4.5 percent.


rida@tradingeconomics.com
9/8/2014 10:43:05 AM