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
Negative foreign exchange growth points to hot money outflows in April
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.
Pressuring China with a proposed new trade area
A proposed new US-led trade area appears intended to pressure China, but will it work?
Johnson Controls hit by safety allegations in China
The US battery maker has come under the spotlight for allegedly causing lead poisoning among children in the proximity of its Shanghai plant.
Home Inns to cement leading position
The budget hotel operator is expected to widen its lead in the market through the acquisition of Motel 168.
Rothschild sees opportunity as China "goes out"
A sharp acceleration of Chinese corporate investments overseas is in prospect as intensifying domestic push factors marry with increased international facilitation.
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