Quantitative easing (QE) refers to large-scale asset purchases by the US Federal Reserve to inject liquidity in the world’s biggest economy after the onset of the global financial crisis in late 2008. In September 2012, stubbornly high US unemployment and faltering economic growth prompted it to launch the third phase of this stimulus (QE3), under which it planned to buy US$40 billion worth of bonds per month, with no set end date. As of late 2012, it had bought some US$2.3 trillion in long-term securities. In December 2012 it announced it was increasing its QE3 purchases to US$85 billion a month.
Beijing will create a ministerial-level division dedicated to financial industry security within the new National Security Commission to be chaired by President Xi Jinping.Tuesday, 28 January, 2014, 8:57am 1 comment
The US Federal Reserve decided to hold off on scaling back its bond-buying program on Wednesday, and at least one reason for its choice may have been a stubbornly weak economic indicator: bank lending.19 Sep 2013 - 10:51am
The US Federal Reserve said it would continue buying bonds at a US$85 billion monthly pace for now, surprising financial markets that were braced for a reduction in the central bank's economic stimulus.19 Sep 2013 - 10:51am 1 comment
Gold is at a strange juncture. In sharp contrast to the previous two rounds of quantitative easing by the US Federal Reserve, gold prices are trending down, not up (see graph).
Quantitative easing is inflationary. Gold offers protection on inflation. Investors should be buying gold now to guard against QE3-fuelled inflation, but this is not the case.28 Jan 2013 - 4:39am
Hong Kong stocks rose to a 16-month high on speculation the US central bank may decide to more than double the size of its monthly bond purchases, which could draw more hot money into the city's equity market.
The Hang Seng Index added 179.41 points, or 0.8 per cent, to finish at 22,503.35 yesterday, the highest since August last year.13 Dec 2012 - 4:49am
There were net capital inflows to the mainland for a second month in October. But it is unlikely to be sustained owing to global uncertainty and the yuan's stabilising exchange rate, analysts said.17 Nov 2012 - 4:23am
Global asset managers Natixis and Amundi, two of the world's top 15 fund houses by assets, are set to expand in Hong Kong, hiring more professionals as more hot money flows into the city.9 Nov 2012 - 3:59am
Inflation concerns have prompted swap traders to scrap bets Li Keqiang will ease monetary policy after he is appointed as the next premier at a Communist Party congress starting today.8 Nov 2012 - 2:22am
The yuan traded at the strong end of its permitted trading band yesterday ahead of the Communist Party's 18th congress and the US presidential election, but analysts said the currency's strength was not sustainable.7 Nov 2012 - 3:54am
The Hong Kong government may be increasingly worried about hot money pouring into the city, but stock market participants are playing it cool.
The reason could be that they have not seen much of that hot money flowing into the stock market yet, unlike the inflows that followed previous rounds of US monetary policy loosening known as quantitative easing.6 Nov 2012 - 3:36pm
An influx of hot money into Hong Kong chasing the rising yuan has forced the city's financial chiefs to exchange HK$32.24 billion worth of local currency for US dollars in the past two weeks as they try to stop the Hong Kong dollar from spilling over its official limit of HK$7.75 against the greenback.3 Nov 2012 - 3:22am
Get ready for rising food and petrol prices, and the number of mainland tourists, as the effects of the yuan hitting a 19-year high spills over into Hong Kong.3 Nov 2012 - 3:22am
The spot rate for the yuan advanced to a new 19-year-high in intraday trading yesterday, but analysts said a significant appreciation was unlikely in the near future.26 Oct 2012 - 2:50am
The surge of foreign exchange into the mainland last month is expected to ease pressure for monetary loosening in the near term.
But the influx is unlikely to persist, given the gloomy trade outlook and lack of appreciation in the yuan, analysts say.24 Oct 2012 - 4:07am
Prices of second-hand homes in Hong Kong have risen by almost 3 per cent since the latest round of monetary easing in the United States on September 14, according to Centaline Property Agency.
However, sales volumes are down, partly because purchasing power shifted to the new housing market and buyers were becalmed by the government's short- and long-term measures to cool demand.17 Oct 2012 - 2:36am