China Economy Forum

[Chinese-Dragon]

I love new record highs.

Economy needs to do well for our reform momentum to continue on the right track.

 

[cirr]

Sh1t。

Too many dollars sloshing around。

 

[TaiShang]

Just another day in China.

Good that Chinese leadership does not give the rat's back to the Western pundits lecture about the Chinese economy.

 

[UnChosen]

It is not exactly a good thing unless China can find more use of that money that does not involve property speculation all over the world or just parking it in US treasuries.

I guess it is one step better than the other export giant Germany wasting its export money on US military ventures and bailing out failing European countries.

 

[onebyone]

good news

 

[mike2000]

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

UK to launch world’s first renminbi bond outside China

Brother. I said this in another thread. The dollar is by far the world's most traded currency and even more so the world currency reserve. No other currency even comes close, and it will remain this way for a long time to come. The only currency that even stands a chance against the dollar is the Euro, but even with that it still lags far behind. Much less the yuan.

Until China fully liberalizes it's currency/financial market (which won't happen for a longgggg time ), then it stands no chance at all of ever matching the dollar(even though it's the world largest trader notwithstanding ).

So my country setting up a renmimbi bond is just a renmimbi drop in a large dollar ocean.

 

[Beidou2020]

Brother. I said this in another thread. The dollar is by far the world's most traded currency and even more so the world currency reserve. No other currency even comes close, and it will keep being this way for a long time to come. The only currency that even stands a chance is the Euro, but even with that it still lags far behind. Much less the yuan.

Until China fully liberalizes it's currency/funancial market (which won't happen for a longgggg time ), then it stands no chance at all of ever matching the dollar(even though it's the world largest trader notwithstanding ).

So my country setting up a renmimbi bond is just a renmimbi drop in a large dollar ocean.

Chinese financial market is already opening up as we speak.

The Renminbi will become the top global currency within 15 years. China already has deep and liquid financial markets and the economic size.

Euro has never challenged the dollar as it never wanted to be a price maker. China wants the Renminbi to be the top reserve currency and it has the capabilities to back it up.

Chinese financial markets are already large enough to make the Renminbi a top 3 currency and the financial market growth is rapid.

Financial power follows economic power. China is now the largest manufacturing nation, largest industrial nation, trading nation, largest exporter and soon to be the largest importer, largest retail market, 2nd largest consumer, etc.
When you have manufacturing and industrial might, consumption might, trading might, you are already an economic juggernaut. Financial power is a complement to economic power. Financial power needs various financial instruments and you need deep and liquid markets. China is rapidly developing the financial instruments and market depth and liquidity is growing with it.

When China opens up the financial markets as its being done now, the use of the renminbi will skyrocket in staggering time and the lead the US dollar has now will be cut down rapidly in pretty quick time.

All this nonsense that the dollar will be top world currency for another 30 years fails to see the disaster that is the US economy and the capabilities of China as a massive player in global commerce.

US has never, and I mean never faced an economic rival like China.

 

[mike2000]

Chinese financial market is already opening up as we speak.

The Renminbi will become the top global currency within 15 years. China already has deep and liquid financial markets and the economic size.

Euro has never challenged the dollar as it never wanted to be a price maker. China wants the Renminbi to be the top reserve currency and it has the capabilities to back it up.

Chinese financial markets are already large enough to make the Renminbi a top 3 currency and the financial market growth is rapid.

Financial power follows economic power. China is now the largest manufacturing nation, largest industrial nation, trading nation, largest exporter and soon to be the largest importer, largest retail market, 2nd largest consumer, etc.
When you have manufacturing and industrial might, consumption might, trading might, you are already an economic juggernaut. Financial power is a complement to economic power. Financial power needs various financial instruments and you need deep and liquid markets. China is rapidly developing the financial instruments and market depth and liquidity is growing with it.

When China opens up the financial markets as its being done now, the use of the renminbi will skyrocket in staggering time and the lead the US dollar has now will be cut down rapidly in pretty quick time.

All this nonsense that the dollar will be top world currency for another 30 years fails to see the disaster that is the US economy and the capabilities of China as a massive player in global commerce.

US has never, and I mean never faced an economic rival like China.

Lol chill bro. Most of what you wrote about Chinas financial market/currency liberalisation is in future tense ' will, soon, when' etc. So far I don't see chinas policy changing that radically anytime soon.

You said 'Chinese financial markets are already large enough to make the Renminbi a top 3 currency and the financial market growth is rapid.' . if so why is the renminbi not among the top 3 currency as of now? This shows Chinas financial markets are still lagging far behind. In fact even the Japanese yen is more internationally recognised than the Renminbi(despite Japan having a much more smaller economy and trade volume than China), much less rivalling the Euro and even more so the dollar. chinas financial market backwardness can be seen in the number of Chinese tech companies choosing to list in the U.S than in their home country. How many foreign companies are listed in Chinas stock exchange? As far as I know, NONE. The only Chinese city that has a global financial market is Hong Kong(that's also due to our laws/ legacy there.)

As for China being the most formidable competitor the U.S has faced, that's not entirely correct. The U.S.S.R was also a much more formidable enemy than China. Though tbh, it was mainly a military one, unlike China who is mainly a much more financial/economic challenge which makes it more difficult/complex for the U.S to tackle. However, you can't say definitely if China is the most formidable rival the U.S has had, economic yes, military farrrrrrr from being the case(not even in 50years).

Well its not like I'm blaming China though. China has done quite well these past decades, coming from virtually nowhere to where it is now is commendable, but to think its currency will be able to rival the mighty dollar is far fetched, you still have a long way to go before you even come close to the U.S dollar. At least you started the journey.

 

[cirr]

PUBLISHED: September 12, 2014 00:30 LAST UPDATED: September 12, 2014 21:30

UK to issue Chinese currency bond

The UK will issue a bond in the Chinese currency for the first time and make it part of the country's foreign exchange reserves.

Chancellor George Osborne speaks during a bilateral with Chinese vice president Ma Kai


Chancellor George Osborne said Britain will become the first government outside China to issue a renminbi (RMB) bond.

Speaking after a summit which sealed new business deals between British and Chinese firms worth more than £2.4 billion, Mr Osborne said it was a "historic moment" which would secure jobs and investment.

Chinese vice-premier Ma Kai, appearing alongside Mr Osborne at a press conference in Westminster, said it was an "issue of historic significance".

The bond is expected to be worth around £200 million, or two billion RMB, the same value as that issued by the China Development Bank in London in another symbol of the growing financial ties between London and Beijing.

The Chancellor has made it a priority to establish the City as a hub for trading in the currency of the Asian economic powerhouse.

Mr Osborne said: " China Construction Bank have announced their intention to issue a further renminbi bond in London and in a clear sign of confidence in the UK as a financial centre, China Development Bank have today issued a two billion RMB (£200 million) bond in London - the first by a quasi-sovereign outside greater China - and announced that they will open a representative office in London, its first in Europe.

"I can now announce that the UK government intends to be the first national government outside of China to issue a bond in China's currency.

"We have issued bonds in US dollars before, now we will be issuing a bond in renminbi and it will be used to add renminbi to our foreign exchange reserves for the very first time, alongside US and Canadian dollars, euros and Japanese yen.

"This is a historic moment, a statement of confidence - our confidence - in the potential of the renminbi to become a global reserve currency.

"Let me be clear: as China becomes a bigger and bigger part of the world economy, their currency is going to be used around the world.

"We here in Britain understand that and I want us to be first country in the world to seize the opportunities that that will bring.

"Because issuing Chinese bonds here means jobs and investment here in Britain, which is what our long-term economic plan is all about."

In other developments, Mr Osborne said t he Industrial and Commercial Bank of China - the world's largest bank - has been issued with a branch licence by the Prudential Regulation Authority enabling it to expand its operations in the UK.

Lloyd's of London has also been given permission to open a Beijing branch.

Other deals and projects announced today run from golf courses and a new translation of Shakespeare, to nuclear power and high-speed rail.

UK to issue Chinese currency bond « Shropshire Star

 

[jkroo]

It seems that domestic buying power works. We can see even higher comsumption of the next season (Sep to Dec). Lets waiting for statistics data of year 2014.

 

[Edison Chen]

Singapore's prime minister, Lee, tours hi-tech facilities in Guangzhou and Shenzhen

Singaporean Prime Minister Lee Hsien Loong started his week-long visit to southern China with tours of key companies and projects in Guangzhou and Shenzhen today.

A 50-person group, including Lee’s wife, Ho Ching, and the country’s transport and trade and industrial ministers and private businessmen are accompanying Lee on the trip, state media reported.

Lee’s visit in Guangdong included the two cities’ hi-tech development zones and enterprises, including the Qianhai area and the mainland’s leading internet operator, Tencent, in Shenzhen and Sino-Singapore Guangzhou Knowledge City, according to the China News Service.

Singapore's embassy in Beijing said Lee would also be attending the 11th China-Asean Expo in neighbouring Guangxi province, and he included Guangzhou and Shenzhen in his trip in order “to be updated on developments in Southern China”.

Singapore is the country-of-honour for this year’s expo.

In an interview with the Nanfang Daily before his trip, Lee said nearly 50,000 Chinese officials had visited Singapore in the past two decades, and Singapore officials also regularly visit China.

“Visiting Chinese officials have begun to look at different things. In the past it was about economy, but in recent years they are more interested in issues about social management, including housing, education and law,” the Daily quoted Lee as saying.

Singapore and China are planning to build a third government-to-government project in western China, after jointly setting up an industrial park in Suzhou and an eco-city in Tianjin.

Guangdong was Singapore’s top trading partner among Chinese provinces, and the city-state was Guangdong’s largest foreign investor last year.

Lee is also scheduled to visit Hong Kong during the trip to China and meet the chief executive, Leung Chun-ying, and Tung Chee-hwa, the vice-chairman of the Chinese People’s Political Consultative Conference, according to the prime minister’s office.

Singapore's prime minister, Lee, tours hi-tech facilities in Guangzhou and Shenzhen | South China Morning Post

 

[Aepsilons]

Treasury's Lew warned China on antitrust probes of foreign firms: WSJ

(Reuters) - U.S. Treasury Secretary Jack Lew has written to the Chinese government warning that a recent spate of antitrust investigations against foreign companies could have serious implications for U.S.-China relations, the Wall Street Journal reported on Sunday.

The newspaper said Lew sent a letter to Chinese Vice Premier Wang Yang and said that China's recent focus on foreign companies could devalue foreign intellectual property, citing people briefed on the contents of the letter.

The paper said the letter was sent in recent days. Representatives of the Chinese cabinet did not respond to requests for comment, the WSJ reported.

The U.S. Treasury declined comment when asked to confirm the report. “We regularly correspond with our international counterparts on a variety of issues,” a Treasury official said earlier.

At least 30 foreign firms, including U.S. companies such as Microsoft Corp (MSFT.O) and chip maker Qualcomm Inc (QCOM.O) have come under scrutiny as China seeks to enforce a 2008 anti-monopoly law that some critics say is being used to unfairly target foreign firms.

After July talks on the U.S.-China Strategic and Economic Dialogue, Treasury said China "recognized that the objective of competition policy is to promote consumer welfare and economic efficiency, rather than to promote individual competitors or industries, and that enforcement of its competition law should be fair, objective, transparent, and non-discriminatory."

In the last two weeks, four leading international business lobbies have raised alarm over the Chinese investigations.

Their complaints range from worries that foreign companies are being unfairly targeted by probes motivated by China's industrial policy aims to concerns over the use of strong-arm tactics by Chinese regulators.

But China's three anti-monopoly regulators said on Thursday they are not targeting multinational firms and the enforcement work is fair and transparent.

China's Premier Li Keqiang has said that only 10 percent of companies impacted by anti-trust investigations are foreign.

The Qualcomm case could yield record fines of more than $1 billion. Regulators have also announced their first-ever punishments of foreign carmakers for price-fixing, fining a Chinese venture of Volkswagen AG (VOWG_p.DE) and the China sales unit of Fiat's (FIA.MI) Chrysler a combined $46 million.



Treasury's Lew warned China on antitrust probes of foreign firms: WSJ | Reuters

 

[cirr]

London Metal Exchange, China Construction Bank to work on new products

Mon Sep 15, 2014 6:39am EDT

* Owner HKEx has sought to expand LME into mainland China

* State-owned CCB is China's second-biggest lender

* CCB is first official UK clearing bank for renminbi

LONDON, Sept 15 (Reuters) - The London Metal Exchange (LME) and China Construction Bank Corp (CCB), the second-biggest lender in the world's biggest metals consumer, have agreed to develop new products and cooperate on marketing, they said on Monday.

The LME, the world's top market for industrial metals, its unit LME Clear and owner Hong Kong Exchanges and Clearing Ltd (HKEx) has signed a memorandum of understanding with CCB, a joint statement said.

The agreement is an important step for HKEx, which paid $2.2 billion to buy the LME in December 2012 - a price that many analysts regarded as very high - and vowed to make the takeover profitable by extending its reach into mainland China and launching new products.

"This agreement marks the beginning of our collaboration with CCB in the exploration of new products and services suitable for mainland China, Hong Kong and other markets," said HKEx Chief Executive Charles Li.

The agreement aims to build on the state-owned bank being named recently as the first official clearing bank for renminbi in the United Kingdom, the statement said.

The LME said in June it planned to launch new steel rebar and scrap contracts, probably next year, while a second phase of contracts could include ones for iron ore, coking coal and steel coil.

A new aluminium premium contract is due to kick off in the second quarter of next year.

The LME has struggled, however, to implement its Chinese expansion plans, encountering obstacles for example to opening metal warehousing facilities in the country.

LME Clear, the exchange's new clearing house, is due to launch on Sept. 22 and has been seeking to add renminbi as an acceptable cash collateral.

CCB's Chairman and Executive Director Wang Hongzhang said the bank aimed to establish a fast-track channel for Chinese mining, smelting and metal processing companies to access international commodity trading markets.

CCB posted a lower-than-expected increase in second-quarter profit, with rising levels of bad loans, joining peers who have suffered from the country's slowing economic growth.

China's biggest banks, grappling with the slowing economy, are turning their back on mainstay borrowers like manufacturers and courting alternative industries in a bid to boost revenue. (Reporting by Eric Onstad; Editing by Pravin Char)

 

[Beidou2020]

Lol chill bro. Most of what you wrote about Chinas financial market/currency liberalisation is in future tense ' will, soon, when' etc. So far I don't see chinas policy changing that radically anytime soon.

You said 'Chinese financial markets are already large enough to make the Renminbi a top 3 currency and the financial market growth is rapid.' . if so why is the renminbi not among the top 3 currency as of now? This shows Chinas financial markets are still lagging far behind. In fact even the Japanese yen is more internationally recognised than the Renminbi(despite Japan having a much more smaller economy and trade volume than China), much less rivalling the Euro and even more so the dollar. chinas financial market backwardness can be seen in the number of Chinese tech companies choosing to list in the U.S than in their home country. How many foreign companies are listed in Chinas stock exchange? As far as I know, NONE. The only Chinese city that has a global financial market is Hong Kong(that's also due to our laws/ legacy there.)

As for China being the most formidable competitor the U.S has faced, that's not entirely correct. The U.S.S.R was also a much more formidable enemy than China. Though tbh, it was mainly a military one, unlike China who is mainly a much more financial/economic challenge which makes it more difficult/complex for the U.S to tackle. However, you can't say definitely if China is the most formidable rival the U.S has had, economic yes, military farrrrrrr from being the case(not even in 50years).

Well its not like I'm blaming China though. China has done quite well these past decades, coming from virtually nowhere to where it is now is commendable, but to think its currency will be able to rival the mighty dollar is far fetched, you still have a long way to go before you even come close to the U.S dollar. At least you started the journey.

China already has the financial market depth and liquidity for the renminbi to be a top 3 currency. Financial market depth and liquidity is the hardest part to create. Once the renminbi open up under the capital account the renminbi will definitely be top 3 currency and surpass the dollar by 2030 (probably much sooner). Yen and Euro have never challenged the dollar as they don't have independent foreign policies so they take orders from the US. They are vassal states of the US. They will never challenge the US.

China is an independent country with an independent foreign policy. China has a goal of become the reserve currency. China can easily open up the financial markets to foreigners and the renminbi use will skyrocket like it has over the past 4 years since China has gradually opened up the financial markets. China don't need to develop depth and liquidity in the capital markets as it already has it. This is a prerequisite to developing a global currency. China just hasn't open up the capital account until recently and even the slight opening up of the capital account over the past 4 years has seen the rapid use of the renminbi. Once you have the scale in financial markets and you actually go about trying to make your currency a reserve currency, its very easy. Japan and EU never did it properly under US pressure. US can't do that to China. Renminbi will topple the dollar within 15 years. I think it will happen earlier but Chinese capital control will be removed within the next 3-4 years to make Shanghai a financial hub by 2020 and that will make the renminbi use increase and the dollar will suffer major crisis as it loses market share. As the demand for dollars falls due to competing currencies, the US will experience major inflation pressure as they don't have anyone to absorb the extra supply of dollars and the US will have raise interest rates which will make funding their debt and deficits much harder.

USSR was just a military challenge but it could never use the military as it was checked by an equally powerful military. Two powerful militaries rarely go head to head as MAD is established. As China grows in strength, the MAD scenario will be established and the US military will be just like the Soviet military where military power can't be used to checkmate the other power. US used its economic might to counter the Soviets and it is economic might that determines power and China will be way more powerful than the US in economic power. US won't touch China economically. Not a chance in hell. This is why China will dominate this century. China can match US technology and outproduce the US with its much bigger economy in the future.

US military is more hype than actually being able to win wars against powerful countries. They are too scared to fight a powerful military. Besides, China has already defeated the US in the only war between the US and China

 

[mike2000]

Treasury's Lew warned China on antitrust probes of foreign firms: WSJ


View attachment 49328


(Reuters) - U.S. Treasury Secretary Jack Lew has written to the Chinese government warning that a recent spate of antitrust investigations against foreign companies could have serious implications for U.S.-China relations, the Wall Street Journal reported on Sunday.

The newspaper said Lew sent a letter to Chinese Vice Premier Wang Yang and said that China's recent focus on foreign companies could devalue foreign intellectual property, citing people briefed on the contents of the letter.

The paper said the letter was sent in recent days. Representatives of the Chinese cabinet did not respond to requests for comment, the WSJ reported.

The U.S. Treasury declined comment when asked to confirm the report. “We regularly correspond with our international counterparts on a variety of issues,” a Treasury official said earlier.

At least 30 foreign firms, including U.S. companies such as Microsoft Corp (MSFT.O) and chip maker Qualcomm Inc (QCOM.O) have come under scrutiny as China seeks to enforce a 2008 anti-monopoly law that some critics say is being used to unfairly target foreign firms.

After July talks on the U.S.-China Strategic and Economic Dialogue, Treasury said China "recognized that the objective of competition policy is to promote consumer welfare and economic efficiency, rather than to promote individual competitors or industries, and that enforcement of its competition law should be fair, objective, transparent, and non-discriminatory."

In the last two weeks, four leading international business lobbies have raised alarm over the Chinese investigations.

Their complaints range from worries that foreign companies are being unfairly targeted by probes motivated by China's industrial policy aims to concerns over the use of strong-arm tactics by Chinese regulators.

But China's three anti-monopoly regulators said on Thursday they are not targeting multinational firms and the enforcement work is fair and transparent.

China's Premier Li Keqiang has said that only 10 percent of companies impacted by anti-trust investigations are foreign.

The Qualcomm case could yield record fines of more than $1 billion. Regulators have also announced their first-ever punishments of foreign carmakers for price-fixing, fining a Chinese venture of Volkswagen AG (VOWG_p.DE) and the China sales unit of Fiat's (FIA.MI) Chrysler a combined $46 million.



Treasury's Lew warned China on antitrust probes of foreign firms: WSJ | Reuters

ahahahahhaha........Lmao. a fine of $46 million for two big automotive companies? This means an average $23million each. Thats less than peanuts. They have to learn from the U.S about how to carry out REAL anti trust probe.. The outcome/fine in the U.S is usually in the billions of dollars, not $23million each.
Due to all these, i don't think this anti trust probe is for real, seems they are just trying to send a message to foreign companies, to force them to negotiate/transfer more technology to local firms or something. Since if this was really to discourage monopolies/anti competition as they say, then the fines would have been much more severe like it is in the U.S/E.U. So i think this article is right, seems the Chinese are trying to target foreign companies, which doesnt bode well for our relations with them.