In today’s talking points: The People’s Bank of China surprises with market tolerance and keeping to President Xi Jinping’s goal of a 6.5 per cent growth;China is set to increase protocols of bank cards overseas;Fixing adjustment has been better reflecting the fundamentals of the Chinese economy; Fair Work Australia plans an increase of 3.3 per cent
China’s Economy Is Back
Squeezing its leverage in part of the financial system The People’s Bank of China surprises with market tolerance and keeping to President Xi Jinping’s goal of a 6.5 per cent growth, confirms economists from Morgan Stanley, Mizuho Securities and Oxford Economics. The improvements between regulators and the restrictions towards the financial leverage has been interpreted as not likely to cause in economy and liquidity sectors, says Robin Xing, Chief China Economist Morgan Stanley. Risk of over-tightening is minimal as policy creators are marking a balance among controlling financial risks and maintaining stable growth, with consumer and export sectors also set to keep growth resilient, Shen Jianguang, chief Asia economist at Mizuho Securities Asia Ltd.
Read more at www.bloomberg.com
Overseas Bank Card Supervision Steps Up
In a bid to fight money laundering, terrorist financing and tax evasion, China is set to increase protocols of bank cards overseas, according to foreign trade regulators. Beginning September 1, banks will be required to issue a daily report of withdrawals and spending overseas ATMs exceeding 1, 000 yuan ($147), stated the State Administration of Foreign Exchange (SAFE). With $120 billion being spent in 2016 overseas improving quality and transparency on cross-border transactions is paramount.
Read more at www.caixinglobal.com
Yuan Tweaks To Hold Currency Stable
According to analysist new mechanism manipulations of the yuan’s exchange rate are set to give more power to counter market sentiments gambling against the currency. The adding of a ‘countercyclical’ component to the system analysing the day-to-day fixing of the yuan’s exchange rate. This fixing adjustment has been better reflecting the fundamentals of the Chinese economy along with its supply and demand in the foreign exchange market.
Read more at www.caixinglobal.com
Australia’s Minimum Wage Increases
Set to take effect July 1, Fair Work Australia is turning a new leaf from overly cautious approaches and plans an increase of 3.3 per cent or $22.20 per week. According to international sources modest and regular wage increases do not result in disemployment effects confirms President Justice Iain Ross who heads the seven-member annual wage review panel. Scepticism has been raised by Australian Retailers Association Chief Executive Russell Zimmerman, stating that with economic uncertainties, concerns have been raised around retail growth. Although it has been noted by Ross that company profits from 2016 were particularly robust, above that of the average last 10 years. Labour productivity in the markets sector has risen along with net disposable income at 6.8 per cent in 2016.
Read more at www.afr.com