china

Here’s a New Way to Bet on China: Open a Renminbi Bank Account [2011]

"China's economy is booming, and in the West, everyone from President Obama on down is demanding that the Chinese currency be allowed to rise in value. Now, it's possible for small investors in the U.S. to capitalize on this opportunity. The Bank of China's New York Branch announced this week that Americans will now be able to open FDIC-guaranteed accounts in the bank in a way that was never before permitted -- by converting their deposits into the Chinese currency, known officially as the renminbi and colloquially as the yuan. According to the bank's website, account owners can exchange as much as $4,000 worth of renminbi a day, up to a maximum of $20,000 a year." Continue reading →

Continue ReadingHere’s a New Way to Bet on China: Open a Renminbi Bank Account [2011]

Marc Faber: This Will End In Disaster

"With gold and silver plunging, the US dollar strengthening, and oil still above $100 a barrel, today Marc Faber told King World News this will 'end in disaster.' This is part I of a series of written interviews that will be released today on KWN in which Faber discusses the end game, government theft, how investors can protect themselves, gold, silver, bail-ins, central planner actions, global markets, and much more." Continue reading →

Continue ReadingMarc Faber: This Will End In Disaster

China, Switzerland sign free trade agreement

"China and Switzerland on Saturday signed a free trade agreement (FTA) - Beijing's first in continental Europe - in a deal that comes against a backdrop of trade tensions between the Asian giant and the European Union (EU). Chinese Commerce Minister Gao Hucheng and Swiss Economy Minister Johann Schneider-Ammann inked the accord in a ceremony at the Commerce Ministry in Beijing before officials and reporters. Afterwards, they clinked glasses of champagne in celebration of the agreement, which aims to increase the $26.3 billion in bilateral trade they recorded in 2012." Continue reading →

Continue ReadingChina, Switzerland sign free trade agreement

Switzerland Will Join Race to Be Trading Hub for China’s Yuan

"Switzerland plans to bid to become an offshore yuan trading center in Europe, competing with Frankfurt and London to corner trade in the Chinese currency. 'It is in Swiss interest to have a renminbi hub in the center of Europe,' Economy Minister Johann Schneider-Ammann said in Beijing yesterday after signing a free trade agreement with Chinese Commerce Minister Gao Hucheng. While no official talks have taken place, Schneider-Ammann said he hopes the idea will become 'more serious' in the coming weeks or months." Continue reading →

Continue ReadingSwitzerland Will Join Race to Be Trading Hub for China’s Yuan

Toronto Reviews Bid to Become Yuan Currency Trading Hub

"Canada’s banks are considering a plan to make Toronto the first North American trading hub for China’s yuan, joining a global race for a share of trading in the currency of the world’s second-largest economy. The moves to set up a trading hub in Canada come as an organization representing Frankfurt’s financial industry predicts the European Central Bank is nearing a deal with China that will help the German financial center become a European yuan trading hub. The Bank of England signed a similar but smaller agreement last month, joining other recent additions like Australia, Turkey, Brazil and South Korea as China pushes for greater use of its currency outside the mainland." Continue reading →

Continue ReadingToronto Reviews Bid to Become Yuan Currency Trading Hub

China signals will cut off credit to rebalance economy

"China said on Friday it would cut off credit to force consolidation in industries plagued by overcapacity as it seeks to end the economy's dependence on extravagant investment funded by cheap debt. The State Council said it would ensure credit kept flowing to businesses that it thought had competitive products, but it would work with banks to oversee a gradual winding down of other businesses. Friday's announcement was the latest sign that China's policymakers are determined to bring debt-fuelled expansion under control, after the central bank allowed a cash crunch last month that sent short-term lending rates to record highs." Continue reading →

Continue ReadingChina signals will cut off credit to rebalance economy

More trade payments settled in yuan

"Changes such as a pilot quota scheme announced in March that allowed a handful of foreign companies operating in China to move funds freely across borders is boosting trade volumes and encouraging other foreign firms to settle trade in yuan. A cash squeeze in the mainland in recent weeks may have made some firms reluctant to use yuan to settle payments, but that appears to have been a temporary impediment as money market rates have come back down. Redenominating Chinese trade in the yuan versus U.S. dollars has always been the primary goal for Beijing and analysts expect the recent wave of reforms to boost yuan trade settlement." Continue reading →

Continue ReadingMore trade payments settled in yuan

Selling in Chinese Yuan: A Tool for U.S. Exporters

"China's 'internationalization' of the RMB shouldn't be confused with liberalization; its borders are still far from porous when it comes to moving money, and the process comes with a lot of paperwork and bureaucracy, said Kok-Chi Tsim, managing director for international banking at J.P. Morgan Chase Bank N.A. in Chicago. Still, it could be worth it for many exporters as a means of cutting costs and attracting new customers, Mr. Tsim said at a breakfast seminar organized by the Georgia China Alliance and attended by more than 40 people.On average Chinese exporters charge about a 5 percent premium to settle transactions in U.S. dollars versus RMB." Continue reading →

Continue ReadingSelling in Chinese Yuan: A Tool for U.S. Exporters

Chinese RMB likely to replace dollar in global trade

"Globally, the use of RMB has been increasing since 2009, when China launched a pilot programme to internationalise its currency by allowing the RMB to be used to settle cross-border trade. Since then, China’s trading partners have increasingly been able to use the RMB when paying for imports or receiving payments for exports. In 2012, 12 percent of China’s total trade was paid for in RMB, up from three percent in 2010. By 2015, HSBC expects that around 30 percent of China’s total trade — equivalent to around $2 trillion — will be settled in RMB. There are more than 30 markets worldwide conducting over 10 percent of their business with China in RMB." Continue reading →

Continue ReadingChinese RMB likely to replace dollar in global trade

China plans to allow yuan trade settlement for individuals this year

"China is looking into how individuals and small businesses can settle trade using yuan this year, a People's Bank of China official told Reuters on Monday, potentially opening a massive new conduit for Chinese currency to flow into global markets. At the same time, by allowing individual traders and companies, Beijing can help eliminate the risk of currency fluctuation for individuals and small enterprises in the import/export sector. Chinese individuals are only permitted to exchange the equivalent of $50,000 per year for use in overseas purchases or investments, but many companies have managed to get around these restrictions through trade." Continue reading →

Continue ReadingChina plans to allow yuan trade settlement for individuals this year