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.

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.

Tuesday, 29 January, 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

ICBC expands in Middle East

Photo: Xinhua

ICBC is easily China's most outward-looking bank...

15 Nov 2012 - 1:29pm

Think tank predicts 5.7 yuan to the US dollar by 2017

Photo: Reuters

The exchange rate of the Chinese yuan against the US dollar will be 5.7 in 2017, Caixin reports, citing a private think tank’s prediction.

7 Nov 2012 - 3:12pm

Beijing says yuan has reached equilibrium against US dollar

Zhou Xiaochuan

China says its currency has approached its equilibrium rate against the US dollar, indicating chances are slim that the yuan will continue rising significantly.

People's Bank of China governor Zhou Xiaochuan , in a speech delivered in Tokyo on his behalf by one of his deputies, stressed the yuan's valuation is mainly determined by the market, not government intervention.

15 Oct 2012 - 8:36am

China central bank says currency near equilibrium

Zhou Xiaochuan, governor of the People’s Bank of China, stayed away from the IMF meetings, but one of his deputies delivered his remarks on Sunday. Photo: AP

China’s currency has reached its equilibrium rate and its value is mainly determined by the market, rather than intervention, Beijing’s central bank chief said on Sunday, signalling there is little likelihood of major movement in the yuan’s value in the near future.

29 Aug 2013 - 4:13am

China fails to set timetable for financial reforms

Blueprint sheds no light.

True to form, mainland policymakers played safe in setting the latest five-year blueprint for the nation's financial sector, with no ambitious deadlines set for important reforms.

2 Oct 2012 - 2:46am

Business Digest, September 21, 2012

China Ocean Shipping is eyeing the possibility of expanding into offshore oil and gas.

Taiwan export orders from mainland rise

21 Sep 2012 - 2:46am

London and HK push for yuan role

David Wootton, Lord Mayor of the City of London

A high level forum of Hong Kong and London bankers will meet again in December to study measures to push the two cities' roles in the internationalisation of the yuan, according to David Wootton, Lord Mayor of the City of London.

15 Sep 2012 - 4:03am

China Digest, September 15, 2012


Head-on crash hurts 10

Ten people were injured in Miyuan county when a minivan being used as an illegal taxi struck their vehicle head-on, the Beijing Times reports. At least one of the injuries was serious. One injured passenger said the minivan crossed into their lane while trying to avoid another car.

15 Sep 2012 - 3:45am

Mainland slows down forex buying

With the private sector less keen to convert foreign currency, yuan supply is tightening. Photo: Reuters

Foreign exchange accumulation on the mainland decelerated drastically this year, limiting the central bank's alternatives in boosting money supply.

The People's Bank of China's purchases of foreign exchange totalled 298.8 billion yuan (HK$365.79 billion) in the first seven months of the year, a year-on-year slump of 87 per cent, it said.

24 Aug 2012 - 3:37am