China must create more channels for investors and companies to use the yuan if it wants to internationalize the currency and put it on a par with the yen and the euro, central bank officials and economists told a forum in Shanghai yesterday.
A bartender at my neighborhood pub recently asked me how the Shanghai stock market was performing. I said it was at about 2,600 points. He jumped and said, “No! The Communist Party wouldn’t let that happen.”
China has to raise deposit rates by “at least” 3 percentage points in the next 12 months to protect investors faced with a negative return on their savings as inflation accelerates, independent economist Andy Xie said.
A doubling of China’s manufacturing wages over the next five years won’t deter foreign investment because Asian rivals such as India and Indonesia lack comparable infrastructure, former Morgan Stanley economist Andy Xie said.