The Chinese yuan, also known as the renminbi, is already convertible under the current account - the broadest measure of trade in goods and services. However, the capital account, which covers portfolio investment and borrowing, is still closely managed by Beijing because of worries about abrupt capital flows.
The outgoing commerce minister fired a parting shot at Japan and the United States over the negative impact of their monetary easing on China's trade. Chen Deming's criticism came as unexpectedly strong figures were released yesterday for mainland exports last monthSaturday, 9 March, 2013, 5:42am
Last week People's Bank of China deputy governor Yi Gang declared that the central bank is fully prepared for an outbreak of hostilities. This week the former economics tutor of incoming premier Li Keqiang said "China doesn't approve of some countries' overly accommodative monetary policy."8 Mar 2013 - 4:30am
Besides running a record-high budget deficit, the economic tasks facing the new cabinet also include maintaining a GDP growth rate of 7.5 per cent, keeping inflation steady at 3.5 per cent and guarding against financial risks to make growth more sustainable, something stressed by outgoing Premier Wen Jiabao in his last work report.6 Mar 2013 - 5:24am 1 comment
While bankers see big benefits from Qianhai development there is scepticism elsewhere in the financial industry about whether the plan will benefit the sector or the Hong Kong economy as a whole.26 Feb 2013 - 4:54am
Moves to create the "Manhattan of the Pearl River Delta" on a patch of reclaimed land west of Shenzhen kicked off with a bang last month, and bankers are bullish over prospects for the future financial hub.26 Feb 2013 - 5:21am
The move could be followed by a further relaxation of cross-border flows of yuan in both directions, Chan said, in tandem with the liberalisation of the mainland's capital account.22 Feb 2013 - 5:22am
When people look for the cause of Hong Kong's property market ills, they often point to the city's currency peg to the US dollar.
Because of the peg Hong Kong automatically imports US interest rates, which at a whisker above zero are far too low for the city's relatively vigorous economy, they argue.5 Feb 2013 - 5:02am 3 comments
Qianhai, in Shenzhen, may be the smallest of the dozen experimental zones on the mainland - which include Nansha in Guangzhou and Hengqin in Zhuhai - but its role is arguably the most significant.29 Jan 2013 - 4:56am
China's foreign-exchange regulator urged Group of 20 nations to improve collaboration to avoid any so-called currency wars while signalling he is comfortable with the value of the yuan.29 Jan 2013 - 4:56am
China had announced it would let firms in Qianhai, a US$45 billion special economic zone in Shenzhen, take out yuan loans from banks just across the border in Hong Kong, with tenors and interest rates to be set independently, also a major step towards liberalising the country’s interest rate mechanisms.29 Jan 2013 - 3:40am 5 comments
The mainland should be prepared for big swings in speculative capital flows amid global economic uncertainties, the country's foreign exchange regulator said yesterday.26 Jan 2013 - 2:43am
The Hong Kong stock market is poised to receive a windfall from a renewed effort by Beijing to allow more mainland citizens to buy securities listed on overseas exchanges.13 Jan 2013 - 4:34am
Morgan Stanley, the sixth-largest US bank by assets, plans to eliminate about 1,600 jobs from its investment bank and support staff in coming weeks, a person familiar with the matter said. About half the reductions will be in the US and the rest will affect international employees, the person said. All levels of employees will be affected.10 Jan 2013 - 4:21am
Yuan trades between counterparties based outside China rose to 18 per cent of the deals in the currency settled in Hong Kong.14 Dec 2012 - 5:33pm
Despite perceptions that China's new leadership under Xi Jinping will be conservative, some analysts believe Xi's administration-in-waiting seriously intends to undertake economic reforms.
Laura Cha Shih May-leung, a Hong Kong deputy to the National People's Congress, is one of those believers.27 Nov 2012 - 4:08am