PhD Zhang Ming: Vice Director of International Financial Department, World Economy and Politics Institute, CASS.
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The prerequisites for capital account liberalization remain unfulfilled
At present, the debates on whether to speed up capital account openness are pretty intense in China. Looking at the recent posturing of the monetary officials, those in support of capital account liberalization appear to have got the upper hand. There are market rumors that the Chinese government will implement a basic liberalization of capital accounts in 2015, and a full liberalization in 2020.
June 19, 2013
Careful handling of hot potato
Authorities need to crack down on illegal activities that are facilitating the influx of speculative capital.
China is under mounting pressure from an influx of short-term capital, as is indicated by a newly increased 1.22 trillion yuan ($198.4 billion) in its funds outstanding for foreign exchange in the first quarter, a big increase on the 494.6 billion yuan for the whole of last year. The country's capital and financial account surplus has also soared, to $101.8 billion in the first quarter of this year, up from only $20 billion in the fourth quarter of last year.
January 17, 2013
Soft landing is expected
BEIJING, Jan. 17 (Xinhuanet) -- In the context of decelerating real estate investment, feeble external demand and the economic stimulus measures implemented a few years ago running out of steam, China's economic growth rate is expected to be 7.8 percent year-on-year in 2012, down from 9.2 percent in 2011 and 10.4 percent in 2010.
January 17, 2013
The Tone of Chinese Monetary Policies in 2013
BEIJING, Jan. 10 (Xinhuanet) -- China’s GDP growth is expected to reach 7.5%-7.8% in 2012 and rise to 8% in 2013, which suggests a soft landing for the Chinese economy in the near term. In view of macroeconomic slowdown and of inflation being less pressing in 2012, the People’s Bank of China has carried out relatively loose monetary policies, including interest-rate cuts and reserve-requirement ratio reductions. However, as the domestic property market has shown signs of a rebound in the second half of 2012, the bank, in order to ensure macro-control of the real estate market, began to frequently inject liquidity into the market through reverse repos from the third quarter onwards, in an effort to avoid a further reduction in the reserve requirement ratio.
January 10, 2013
Reforming financial market
BEIJING, Dec. 28 (Xinhuanet) -- The history of the global economy shows that emerging countries need sound and comprehensive financial markets if they are to escape the "middle income trap" and realize their economic transformation from a factors-driven to an efficiency-driven growth model.
December 28, 2012
A difficult balancing act
BEIJING, Nov. 12 (Xinhuanet) -- External and domestic factors mean yuan's exchange rate against the US dollar is likely to remain around the current level.
November 12, 2012
Less Governmental Intervention: Good for Foreign Exchange Market
BEIJING, Oct. 26 (Xinhuanet) -- After the annual review of China’s economy, the International Monetary Fund (IMF) recently softened its stance on the Chinese renminbi, calling it “moderately undervalued” against a basket of currencies, while it previously described the Chinese exchange rate as “substantially undervalued”. Why?
October 26, 2012
The pressure of short-term capital inflows will ease
How to measure the domestic mobility of money in China? It is now becoming a hot topic. The intermediate target to which the monetary policy of China’s central bank aims at has been extended from M2 (broad money) to the aggregate financing in the society, but the aggregate does not include the short-term international capital flows.
September 11, 2012
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