People's Bank of China

Paper cuts sharpest, says Alibaba's Jack Ma

Alibaba's chairman Jack Ma's push into internet finance has raised regulatory concern over risks from the new business. Photo: Xinhua

How do you defeat the country's No 1 e-commerce firm? It may not require any innovation in technology, just a piece of paper, says Jack Ma Yun, the founder and chairman of Alibaba.

Thursday, 20 March, 2014, 12:53am 1 comment

Shanghai official's vow on imminent freeing up of yuan a bone of contention

Liberalising the capital account would be the last step to officially making the currency fully convertible, but it is unlikely to happen soon. Photo: Reuters

When will China fully liberalise the red-hot yuan? Even the central bank of the world’s second-biggest economy may not really have a clue, with senior officials locked in a debate over when foreign exchange controls should be lifted.

19 Mar 2014 - 5:19pm 9 comments

Looser controls over yuan bring mixed blessings

The yuan can now float up to 2 per cent above or below the midpoint rate against the US dollar. Photo: AFP

Beijing's relaxation of controls on trading of the yuan has been greeted as a welcome step towards a freer financial market, but economists have warned it could fuel capital outflow risks and result in massive losses for holders of yuan structured products in the near term.

18 Mar 2014 - 12:20am 4 comments

PBOC halts plans by Tencent, Alibaba for virtual credit cards

Tencent's online payment unit, Caifutong, could be hit by the suspension of QR code payments. Photo: Reuters

News that the People's Bank of China had halted plans by mainland internet giants Alibaba and Tencent to offer virtual credit cards sent Tencent shares tumbling yesterday, along with those of partner China Citic Bank.

15 Mar 2014 - 12:39am 2 comments

Beijing giving foreign economists the cold shoulder

The central bank and regulators are now being more cautious about what they say to foreign economists. Photo: Reuters

Chinese government officials have quietly become more sceptical about foreign banks' research reports and are avoiding senior economists at global banks, partly because of growing mutual distrust over the scale and seriousness of the country's debt problems.

19 Feb 2014 - 4:12am 16 comments

China central bank promises better public communication, eyes inflation

PBOC said in its quarterly policy report that it hopes to anchor investors’ near-term expectations on market interest rates and liquidity. Photo: Reuters

China’s central bank promised on Friday to improve its communication with investors to keep market liquidity and interest rates stable, in an oblique reference to the country’s unprecedented cash crunch in June.

2 Aug 2013 - 9:08pm

Expectations mount for more China interest rate liberalisation

Market forces are seen playing a bigger role in interest rates.

What will be the next step in Beijing's interest rate liberalisation programme? The forecasting game has begun after the central bank freed up lending rates earlier this month, disappointing market participants who had anticipated a more significant change.

29 Jul 2013 - 3:56am

PBOC clears way for asset securitisation

The PBOC says banks are ready for securitisation. Photo: Bloomberg

The People's Bank of China (PBOC) said yesterday it would push forward with plans to introduce credit asset securitisation into financial markets, which would help banks broaden their range of lending. Asset securitisation is a tool of structured finance in which various assets are pooled together and transformed into marketable securities.

6 Jul 2013 - 3:30am

China central bank boss vows to maintain stability after credit squeeze

Zhou Xiaochuan is comfortable with slow growth. Photo: Bloomberg

In an attempt to allay concerns about a cash crunch in the mainland banking system, central bank governor Zhou Xiaochuan pledged yesterday to maintain market stability, saying appropriate policies would be used to fine-tune liquidity.

29 Jun 2013 - 1:41am 1 comment

China, Britain central banks agree on currency swap line

Bank of England governor Mervyn King. Photo: Reuters

The deal was agreed Saturday between Bank of England governor Mervyn King, who steps down at the end of the month, and his counterpart Zhou Xiaochuan of the central People’s Bank of China.

23 Jun 2013 - 1:24pm

Beijing forecast to lift interest rates as growth slows

Economists are forecasting that the People's Bank of China is more likely to raise interest rates than cut them in the coming year. Photo: AFP

Economists are forecasting that the People's Bank of China is more likely to raise interest rates than cut them in the coming year, even as they slash growth projections for the world's second-largest economy.

24 May 2013 - 4:05am

Australia to invest foreign currency assets of A$1.9b in Chinese bonds

Philip Lowe, the deputy governor of Australia's central bank.

The People's Bank of China (PBOC) has approved an initial quota for the investment, the first time that the Reserve Bank of Australia (RBA) would have invested directly in a sovereign bond market of an Asian country other than Japan, Philip Lowe, the RBA's deputy governor, said yesterday at the Australian Chamber of Commerce in Shanghai.

25 Apr 2013 - 5:37am

Wider trading band the next logical step in reform of yuan

Zhou Xiaochuan. Photo: Xinhua

Beijing has foreshadowed a widening of the trading band of the yuan ahead of meetings of the International Monetary Fund, the World Bank and the G20 summit. This is true to form. The trading band was last widened around last year's financial summits. It is a time when China comes under pressure to allow its currency to rise. But while the move may help deflect criticism from trading partners, it has deeper significance.

22 Apr 2013 - 1:58am

Boost to China's money supply brightens outlook

Non-bank lenders are issuing loans hand over fist in China. Photo: Jonathan Wong

New loans extended by mainland banks and non-bank entities grew more than anticipated last month, suggesting there is ample liquidity available to support a recovery in the world's second-largest economy.

12 Apr 2013 - 5:58am

PBOC sounds warning over local government loans

Zhou Xiaochuan says 20 per cent of the loans to the financing vehicles need to be paid out of local governments' budgets. Photo: Simon Song

People's Bank of China governor Zhou Xiaochuan said attention needed to be paid to the development of local governments' financing vehicles and their hidden risks.

14 Mar 2013 - 7:47am