Foreign Exchange Reserves

Central bank eyes new agency for forex investment

Central bank eyes new agency for forex investment

The People's Bank of China (PBOC) is working on a plan to establish a new government agency to invest its US$3.5 trillion of foreign exchange reserves abroad more efficiently.

Wednesday, 7 August, 2013, 8:19am

China yuan near 19-year high versus US dollar as exchange reserves grow

Chinese yuan notes.  Photo: Reuters

The yuan traded within 0.2 per cent of a 19-year high yesterday, amid speculation capital inflows would spur appreciation. China might face "large scale" inflows of speculative funds in the next few years, which would drive asset prices higher and push up consumer prices, Su Ming, deputy head of the Ministry of Finance's research institute for fiscal science, said in an article published yesterday in People's Daily. New-home prices rose last month in 68 of 70 cities tracked by the government, data showed on Saturday.

21 May 2013 - 4:25am

Business Digest, January 17, 2013

HKMA announces senior appointments.

The European Union will not be drawn into a trade war with China, EU ambassador to Beijing Markus Ederer insisted, a day after trade sources said the European Commission found China illegally subsidises its steel producers. 

17 Jan 2013 - 4:19am

China's overseas investment set to soar, minister says

Chen Deming wants outbound investments and FDI to balance.

China's outbound investment is set to rise in the coming years, with its size in the next five to ten years expected to match the foreign direct investment the nation attracts, said Commerce Minister Chen Deming.

8 May 2015 - 9:48am

China records sharp rise in capital outflows

Figures released yesterday indicate capital outflows from the mainland have accelerated, possibly because of expectations the yuan will depreciate as economic growth decelerates.

19 Sep 2012 - 2:57am

Asian emerging markets in good shape, says Fitch

Asia's emerging markets are in good shape to weather outflows of hot money, currency fluctuations, weak exports and global macroeconomic uncertainty next year, according to Fitch Ratings.

In a report focusing on financial risk in the region in the event of a sudden stop in external financing, the rating agency gave a generally positive report.

23 Nov 2011 - 12:00am

Blood money

When the world financial crisis broke in 2008, I wrote several columns for the official mainland paper The Global Times, politely criticising China's central bank for its ignorance of international politics and its mistake in accumulating excessive amounts of US debt, and wondering whether, as I put it, 'the Chinese people's sweat and blood money' could be wasted.

31 Oct 2011 - 12:00am

Facing up to the crisis in fiat money

Last week, I attended the second annual meeting of the Institute for New Economic Thinking, at the Mount Washington Hotel, nestled in a beautiful valley in Bretton Woods, New Hampshire. In 1944, the historic meeting on the international monetary system was held there.

16 Apr 2011 - 12:00am

Growing forex reserves further ammunition for yuan critics

China's foreign exchange reserves topped US$3 trillion for the first time last month, giving critics of its currency policy more ammunition as Group of 20 finance chiefs gather in Washington to address global economic imbalances.

15 Apr 2011 - 12:00am

Why China gains from yuan revaluation

Many believe that if China revalues the yuan, with US$2.5 trillion in reserves, it will lose US$25 billion for every 1 per cent appreciation of the currency. One rather excitable English economist at a Shanghai university even claimed that this loss would represent an equivalent profit to the US government.

29 Mar 2010 - 12:00am

Asia's economic generals are fighting the wrong war

Army generals, it is said, always prepare to fight the last war. For example, when the British army's expeditionary force crossed the English Channel at the beginning of the first world war, its order of battle included no fewer than 15 regiments of cavalry.

29 Dec 2009 - 12:00am

Regulators tighten curbs to block hot money

The mainland's foreign exchange regulator is tightening controls on currency settlements made by foreign-invested companies, the latest attempt to stem a tide of international speculative capital flowing into the country.

5 Sep 2008 - 12:00am

Central bankers caught in a trap of their own making

At some point this month, and very likely today, the foreign reserves of the East Asian region will cross the US$4 trillion mark.

23 May 2008 - 12:00am

HKMA definition of 'loss' poses a lot of questions

'Exchange Fund posts HK$14.6b quarterly loss'

SCMP headline, April 29

Loss? What loss? Does someone mean to tell me that Hong Kong Monetary Authority boss Joseph Yam Chi-kwong decided to go for a punt on the market with our money and came away the poorer by a net HK$14.6 billion on the subsequent margin call?

30 Apr 2008 - 12:00am

US dollar plot claim is nuts

Last week the Shanghai Daily published an opinion piece accusing the United States government of a dastardly plot to defraud the Chinese people through a disguised default on its foreign debt.

28 Apr 2008 - 12:00am