Beijing is driving further internationalisation of the renminbi, with HSBC emerging as the first international bank to remit the currency back to China from abroad.
Tokyo-based Bloomberg columnist William Pesek says current head of the Chinese banking regulator Guo Shuqing is the best choice to replace Zhou Xiaochuan as China’s central bank governor given his strong reformist credentials.
Chinese state media says that efforts to grow the home rental market as well as contain housing price growth will be the key focal points for real estate policies in 2018.
The People’s Bank of China released its 2017 Q4 China Monetary Policy Implementation Report (2017年第四季度中国货币政策执行报告) on 14 February, 2018, just prior to the start of the Lunar New Year.
Beijing’s efforts to curb “covert” increases in local government debt will put a squeeze on the issuance of bonds to fund public-private partnerships.
Analysts expect heavy regulatory pressure to keep local government bond issuance at around 4 trillion yuan this year, roughly on par with the 2017 level.
The Chinese central bank said it would use medium-term lending facilities to help to keep liquidity levels in the banking system steady after the traditional Lunar New year.
The latest data indicates that China’s outbound foreign investment posted its third consecutive month of positive growth in January.
China’s State Administration of Foreign Exchange has announced that it will permit the cash as well as physical settlement of foreign exchange forwards as part of efforts to make the system more market oriented.
The flagship newspaper of the Chinese Communist Party has published an editorial warning against the perils of speculation in bitcoin and other cryptocurrencies, as well as flagged heightened scrutiny of the sector.