Financial Service Talking Points 16-11-15

SAFE announces reform measures for 2015 Q3

China’s State Administration of Foreign Exchange announced a pilot program for MNCs handling of foreign exchange funds will be extended nationwide. The new rules for the management of foreign exchange and debt found that included companies’ costs of funds dropped and they used funds more efficiently. Click here to read the full article at SAFE.

China’s growth target for 2016-2020: 6.5%

The Communique from China’s Fifth Plenum has announced the government’s annual target GDP growth rate to be 6.5%, termed as ‘medium-high growth’. President Xi Jinping has stated that this target is sufficient to achieve the other objectives set out in the plan, with particular reference to China’s plan of pulling 10 million people out of poverty each year until 2020.

NAB is linking the lowered growth rate to demographic factors in their China Economic Update.

LSE’s Professor, Keyu Jin, believes the overarching goal of economic rebalance is stirring from investment towards consumption. To read more click here.

China’s must support the IMF through greater funding

Adam Triggs from Australian National University argues that China should use its upcoming G20 Presidency to push for internationalisation of the Yuan, in addition to funding the IMF as one-third of the its loans (currently serving as funding) begin to expire in 2016. Click here to read the full article.

Alibaba made $14.3 billion on Singles’ Day

Singles’ Day has broken single-day sales records this year. Within the first eight minutes Alibaba had sold $1 billion worth of merchandise. By the end of the 24-hour sale, Alibaba had earned more than Facebook did last year. Click here to see how the Singles’ Day Sale on Alibaba compares with other Internet companies’ yearly revenue, as well as some countries’ annual GDP.

G20 Conference starts on Sunday

Bloomberg has put out ‘what to watch’ list in the lead-up to the G20 Conference in Turkey. The list includes the Putin-Obama dynamic, Merkel on the Syrian refugee crisis, slowing economies in emerging markets like China, Argentina and Brazil, banking regulation and finally the situation in Iran. Click here to read more.

This brief summarises a range of publicly available news articles in both Chinese and  English and AustCham takes no responsibility for the accuracy of the information in these articles. In addition, the views and opinions reflected in these articles are not necessarily representative of AustCham.

For more details on how to get involved in the AustCham Beijing Financial Working Group, please contact Andrew Britz.

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