• Tue
  • Sep 23, 2014
  • Updated: 1:49pm


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.

Xi Jinping's security commission to also tackle financial industry

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

Time to taper? Not if you look at bank loans

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

Fed surprises markets, sticking with stimulus as growth outlook falls

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

Quantitative easing does little to boost gold prices

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

Anticipation of bigger US Fed bond buys drives Hong Kong stocks up

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

Strong yuan and exports pull in more capital

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

European asset managers Natixis and Amundi make push into Hong Kong

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

Li Keqiang's inflation tightrope

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

Chinese yuan trades strongly in lead-up to US election and 18th congress

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

Stock investors buoyant despite small bounce from QE3

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