Efforts by China to damp speculation in the yuan risks driving away investors just as the nation attempts to open up its capital markets in a once-in-a- generation economic overhaul.
China is considering measures, including a levy on spot foreign-currency transactions, to curb speculative capital flows, an official from the foreign-exchange regulator said today.
China’s broadest measure of new credit fell in December while money-supply growth and new yuan loans trailed estimates amid a cash crunch and government efforts to curb speculative lending.
The People’s Bank of China’s Vice Governor Yi Gang said the country will do its part to help correct imbalances in the world economy.
People’s Bank of China’s Vice Governor Yi Gang said his country will do its part to help correct imbalances in the world economy through a “gradual” appreciation of the yuan.
China’s holdings of U.S. Treasuries increased $12.2 billion to a record $1.317 trillion in November, data released on the Treasury Department’s website showed.
Pacific Investment Management Co. sees a 2014 boom in issuance outside the mainland by Chinese companies, driven by a record amount of Dim Sum bonds set to expire and a cash crunch in domestic markets.
China’s yuan rose to a 20-year high after the central bank raised the currency’s daily reference rate to a record and as U.S. jobs data tempered concern the Federal Reserve will cut stimulus further.
China will continue to support Europe and invest in its markets, central bank Deputy Governor Yi Gang said today.
The yuan’s exchange rate is the closest to “equilibrium” as it has ever been, Chinese central bank deputy governor Yi Gang said.
"It's no longer in China's favor to accumulate foreign-exchange reserves."
- Yi Gang on Nov 20, 2013