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  • Dec 28, 2014
  • Updated: 11:46am

Yuan

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.

Outgoing commerce chief warns over trade, inflation

Chen Deming, Minister of Commerce, listens a foreign reporter's question at a press conference at the NPC media centre in Beijing. Photo: Simon Song

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 month

Saturday, 9 March, 2013, 5:42am

Currency warmongering as out of place as the real thing

The yen has fallen 13pc against the yuan in the past three months.

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

China to hike budget deficit to 1.2tr yuan to stabilise growth

Outgoing premier Wen Jiabao (left) and his successor, Li Keqiang, at the first session of the new National People's Congress, which opened in Beijing yesterday. Photo: Simon Song

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

Hong Kong's financial sector remains to be convinced by the benefits of Qianhai

Christopher Cheung Wah-fung.

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

Hong Kong bankers say reforms will help establish Qianhai as yuan centre

A stone bears the Chinese characters for Qianhai in the 15-square-kilometre development site in the western part of Shenzhen. Photo: Edward Wong

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

Let cross-border payments use the yuan says Hong Kong's monetary chief

Yuan business in Hong Kong has made great strides. Photo: Reuters

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

A peg to the yuan would not solve Hong Kong's property problem

Good defence

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 - a small zone with a big role

Hong Kong will advise on Qianhai's financial services. Photo: Reuters

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

Make way, not war

Chinese central bank official Yi Gang says the quantitative easing in developed countries is creating uncertainty. Photo: Bloomberg

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

Banks get green light for 2b yuan in cross-border loans for Qianhai

Qianhai special economic zone in Shenzhen. Photo: Reuters

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

Mainland forex regulator warns of big swings in capital flows

Mainland forex regulator warns of big swings in capital flows

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

Hong Kong stock market to benefit from new mainland investor scheme

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. Photo: AFP

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

Business Digest, January 10, 2013

Clean-air rules affect all coal power plants

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

Non-China deals rise to 18pc of Hong Kong yuan trades

Hong Kong handled 1.93 trillion yuan of trade settlements in the currency in the first nine months, exceeding the total for all of 2011. Photo: AFP

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

Winds of change 'to blow through' China's economy

Workers build walls in Shanghai's Lujiazui financial area. Some predict major economic reform under Xi Jinping's leadership. Photo: Reuters

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