Wu Xiaoling News
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Yuan forwards advanced for a seventh day, the longest winning streak since September 2010, on optimism China will embark on further currency reforms.
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China said it will seek a higher “quality and efficiency” of growth next year, signaling new leaders may accept a reduced pace of expansion in exchange for a more sustainable model.
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China risks a more abrupt tightening in monetary policy next year after refraining from raising interest rates since October even as inflation accelerated to the fastest pace in more than two years.
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China will amend its fund law to start regulating private equity funds, Xinhua News Agency said, citing Wu Xiaoling, vice chairman of the Financial and Economic Committee of the National People’s Congress.
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China’s central bank Governor Zhou Xiaochuan indicated that turbulence in the global economy is limiting the nation’s ability to raise interest rates to counter inflation, according to the China Daily newspaper.
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China’s plan to rein in property prices with a record homebuilding program may worsen local debt risks even as it proves a boon to companies from domestic cement makers to Chilean copper exporters.
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China’s bonds are Asia’s worst performers for the second time in four years, reflecting concern the central bank will have to be more aggressive in raising interest rates as it seeks to rein in inflation.
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China’s economy is highly likely to slow next year and efforts to spur growth will be constrained by inflation and government debt burdens, said Wu Xiaoling, a former deputy central bank governor.
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China can’t raise interest rates because of the risk of attracting inflows of cash that would fuel inflation, said Wu Xiaoling , a former deputy governor of the central bank.
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China’s decision to refrain from increasing interest rates and to order banks to set aside larger reserves instead will benefit stocks, a fund manager at Shanghai Huili Asset Management Co. said.
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