According to the China Securities Journal Yao Jingyuan, chief economist of China’s National Bureau of Statistics, said “Money supply is too big and that’s leading to excess liquidity.” He went on to say, “I would prefer reserve hikes to rate hikes because rate hikes could cause hot money to flow back.” Jingyuan’s comments are further […]
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China
Intellectual property, mobile internet technology and national censorship make an incendiary mix for global business and consumerism. This was brought to center stage recently with the escalating disagreement between Google and the Chinese government over privacy rights for online content. The clash of swords has most recently become a truly intergovernmental affair as well with […]
Concerns over the future impact Chinese policies could have on the real estate sector have nearly halted transactions in the sector as buyers expect prices will begin to fall. According to the China Securities Journal, the volume of second-hand property transactions fell nearly 70% m/m in January, with new sale transactions falling by more than […]
Following up on my comment from early this morning, Uncertainty of Chinese Tightening Continues to Weigh on Asian Markets, I wanted to mention that, surprisingly, the Chinese central bank, during its regularly scheduled Tuesday auction, did not increase the yield on its one-year paper, keeping it constant at 1.9264%. It is widely expected that once […]
According to China’s 21st Century Business Herald, Chinese banks made $212 billion in loans during the first 19 days of January. This large jump could help catalyze further tightening by Chinese officials. According to Credit Suisse Chinese Banks have suspended new lending since the 19th, which could have a ‘meaningful’ impact on manufacturing during the […]
China’s Xinhua News Agency has reported that a new policy in the city of Nanning will ban the sale of uncompleted commercial residential properties. Government officials stated that this program is intended to, “regulate the order of real estate market”. I expect this could be the first of many similar policies around the country to […]
In this morning’s press release China’s National Bureau of Statistics removed the phrases ‘appropriately loose’ monetary policy and ‘expansionary’ fiscal policy from their press release. This is further evidence of the Chinese government’s shifting stance toward it’s monetary policy and could add support to rumors of a potential 27bp rate hike on Friday, which can […]
My sources in China have notified me that a reputable Chinese business paper, the 21st Century Business Herald, has begun reporting on a market rumor that indicates the Chinese Central Bank may be planning a 27bp rate hike this Friday. I personally know very little about the paper, and believe this news is highly speculative. […]
During a discussion over whether or not the country’s property sector was in the midst of a bubble, Qi Ji, vice-minister of Housing and Urban-Rural Development, said, “In some big cities and coastal cities… property prices are too high.” Additionally, at the same meeting an official from the People’s Bank of China was noted saying […]
According to Market News International, Peng Junming, an official within China Investment Corp and former employee of the State Administration of Foreign Exchange (SAFE)has said, “China has bigger asset bubbles than the U.S. The U.S. will definitely raise interest rates in the second half and China could hike rates even earlier than that.” I began […]