In today’s talking points: Aussie companies increasingly use Reminbi to do business with China; Partnership between Queensland Government and Chinese technology incubators for greater investment opportunities; Plan to enhance healthy environment of online financial market is launched in China; China Central Bank invests more into financial market
Aussie companies increasingly use Reminbi to do business with China
An increase of 18% of Australian firms are using China’s RMB compared to just 13% a year ago. These companies believe RMB is a strong international trading currency, and is becoming much easier to use. Development of Chinese financial regulations see businesses having less difficulty understanding and navigating documentary requirements and moving funds as they become more accustomed to using RMB. The increase use of Chinese currency does not limit to Australia, and is becoming more acceptable in Western Europe, North America and other developed countries in Asia-Pacific and the Middle East.
Read more at: Global Times
Partnership between Queensland Government and Chinese technology incubators for greater investment opportunities
CPP – Commercialization Partnership Program is a new joint venture by the Queensland Government and China’s Ministry of Science and Technology (MOST), which will provide researchers and entrepreneurs access to investment opportunities in the PRC. This initiative aims to advance partnerships between the two strong trading nations, and aims to support Queensland innovators to progress technology transfer, as well as to commercialize state-developed technologies through placements in Chinese incubators. Funding has boomed from $180m to $405m, an entry to the Chinese tech hub will give access to world-class facilities, mentors, local business links and insights into the Chinese market. Participants will also gain market intelligence.
Read more at: The Tech Portal
Plan to enhance healthy environment of online financial market is launched in China
On Thursday, the Central Bank and 16 other central government ministries and departments launched a new plan which aims to establish a centralised depository system to protect clients’ funds held by non-banking payment institutions. The plan should enhance the healthy development of the online financial market. Xu Hongcai, a researcher at the China Center for International Economic Exchanges, said:”The ‘barbarian growth’ of internet finance recently exposed many risks. Joint regulation and supervision are necessary for the healthy development of this industry.”Regulating and developing internet finance has been an important facet of the financial system reform advanced in the Government Work Report, delivered in early March by Premier Li Keqiang. According to the People’s Bank of China’s statement, the centralized depository system will help protect clients’ money and minimise risks as well.
Read more at: China Daily
China Central Bank invests more into financial market
On Thursday the Central Bank of China pumped 301 billion yuan ( $44.7 billion) into the financial system in open market operations through MLF ( medium-term lending facility). The MLF had been introduced in 2014. Its role to help commercial and policy banks maintain liquidity by allowing them to borrow from the central bank using securities as collateral. According to the People’s Bank of China, the new funds were injected into 18 financial institutions.Interest rates for MLF loans were unchanged at 2.85 percent for the 217-billion-yuan six-month loans, and 3 percent for the 84-billion-yuan one-year loans. Fan Yifei, deputy governor of the People’s Bank of China, at the press conference held on Monday said the Central Bank keeps maintaining a prudent monetary policy with timely fine-tuning in order to create a favourable environment for debt reduction.
Read more at: China Daily