Economists have been debating the likelihood and impact of prolonged Sino-Japanese trade disruption following recent violent anti-Japanese protests in a number of Chinese cities.
Foreign Direct Investment
According to the People's Bank of China, the central bank, funds outstanding for foreign exchange, an indicator used to track monthly foreign exchange growth in mainland China, recorded a negative growth of Rmb60.571bn in April (see chart). We believe this is part of the reason for the central bank's recent RRR cut. If foreign exchange growth continues to be negative in May or only records small positive growth, it will provide the central bank with more incentive to make another RRR cut in near term to address the economic slowdown issue.
A proposed new US-led trade area appears intended to pressure China, but will it work?
The US battery maker has come under the spotlight for allegedly causing lead poisoning among children in the proximity of its Shanghai plant.
The budget hotel operator is expected to widen its lead in the market through the acquisition of Motel 168.
A sharp acceleration of Chinese corporate investments overseas is in prospect as intensifying domestic push factors marry with increased international facilitation.
Renminbi Compass reflects key changes in the renminbi-denominated investment environment.
Providing research coverage on asset classes as diverse as chengtou bonds, dim sum bonds, real estate, trust products, underground banking, art and antiques, as well as its traditional equity fund research.
Renminbi Compass provides orientation for investors navigating the expanding universe of renminbi asset classes.