Date: Monday, September 7th, 2015
Statement about regulations of MNCs’ foreign currency funds in concentrated operation and management (Chinese)
Source: safe.gov.cn, 02 September 2015
In order to facilitate trading investment and serve the substantial economy, SAFE decided to implement several pilot programs. These improvements include simplifying opening account requirements and foreign exchange procedures, attempting self-management in foreign debts proportion, enhance supervision after transfer.
G20 vows to boost fragile growth, nudges China on currency (English)
Source: Agence France Press, 05 September 2015
G20 financial leaders pledged Saturday to act decisively to shore up stuttering global growth and refrain from unsettling currency moves after China’s controversial devaluation last month. There are several issues they are worried about, including competitive currency devaluation, emerging market, weak economic indicators, lack of market engines and illegal migration resolution.
Will market volatility stall China’s liberalization plan? (English)
Source: ANZ Bank, 31 August 2015
The Chinese authorities will continue with reforms to accelerate capital account liberalization. Initially the response of RMB depreciation was most felt in Asian currency markets. And then, it has broadened to encompass global financial markets, especially in the volatile equities market.
Global stocks mixed after torrid week (English)
By Agence France Press, 28 August 2015
Global equities were hammered on Black Monday as risk-averse investors dumped shares on spreading panic that China could spark a worldwide recession. However, sentiment was soothed by Tuesday’s interest rate cut from PBoC and by Thursday’s bright GDP data in US. On Friday, while Shanghai gained 4.82 percent, Seoul, Sydney, and several other Asian markets also rose.
RBA leaves interest rates on hold at 2pc despite global market volatility (English)
By ABC, 01 September 2015
The RBA has left interest rates on hold at their historic low of 2% for the fourth consecutive month, since May when they cut rates to 2%. After the announcement the Australian dollar remained largely unmoved, trading at 0.7145 cent against the US dollar. The RBA cut rates to their historic low in May.
A slowing Chinese economy and angst over a possible US interest rate rise (English)
Source: Macquarie Group, 03 September 2015
Uncertainty around the continued slump in oil prices, falling inflation expectations and the slowing of China’s economy create a confluence of ’known unknowns’ the exact effects of which can only be determined in hindsight. A sense of panic spreading all over the world, a global sell off is triggered by concerns about China’s slowing economy, weak commodities and falling inflation expectations. Since the volatility index is reaching its highest level since GFC, analysts believe the correction in equities is over-reaction.
Other Financial Services Working Group Members’ market updates:
Australian Markets Weekly by National Australia Bank
Australian Economic Perspective by Commonwealth Bank
Australian Economic Reports by Westpac Banking Corporation
ANZ Bluenotes by ANZ Bank
Market Insights by Macquarie Group
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.
AustCham Beijing’s Financial Services Working Group is chaired by Zhongmin Zha (Westpac Banking Corporation). For more details on how to get involved in the AustCham Beijing Financial Services Working Group, please contact Andrew Britz.
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