All posts in category Currency

Why China PBOC Unveils Prime Interest Rate for Commercial Bank Loans?

China PBOC (China Image)

China PBOC (China Image)

According to The Wall Street Journal, BEIJING–China’s central bank Friday said it has introduced a new prime lending rate, which it said would help push forward interest rate liberalization.

The new bank lending rate, officially known as the “loan prime rate,” would be the rate on loans extended to the best customers of Chinese commercial banks.

The rate is based on a weighted average of lending rates from nine commercial banks, the People’s Bank of China said in a statement on its website.

It said the rate would be calculated each working day and would be announced on the website of the key barometer of interbank lending, the Shanghai Interbank Offered Rate, or Shibor.

The central bank said that initially, it would calculate only a one-year rate. It gave Friday’s level as 5.71%.

In the past, the central bank has set guidelines for domestic interest rates, but it has been trying to give a greater role to the market. The PBOC’s existing benchmark interest rate for one-year loans is 6%.

Read more

Leave a comment
by camelliacamellia on October 25, 2013  •  Permalink
Posted in Asia, Bank, China, Currency, Finance, Investment
Tagged , , , , , , , , , , , , , , , , , , , , , ,

Posted by camelliacamellia on October 25, 2013

https://theasiancenturyreport.wordpress.com/2013/10/25/why-china-pboc-unveils-prime-interest-rate-for-commercial-bank-loans/

Indonesia Home Prices Rise as Demand Bucks Higher Rates

Source: Bloomberg

Source: Bloomberg

According to Bloomberg, Indonesia’s most aggressive monetary tightening since 2005 is set to slow economic growth without denting soaring property demand in the world’s fourth-most populous nation.

A young population, elevated inflation and property-price gains that outpace interest rates are spurring real-estate sales from Jakarta to Manado. Home prices in the third quarter probably rose 14.6 percent from a year earlier, according to a Bank Indonesia survey, while the Indonesian Real Estate Association predicts housing sales will climb more than 50 percent this year.

“Indonesia has a huge population, that’s a potential market for us,” said Setyo Maharso, chairman of the Indonesian real estate association, which predicts 2013 property sales will rise to 400,000 units from 260,000 last year. “For our buyers, as long as they have the ability to pay monthly installments, sales will keep increasing till the year end.”

With foreigners restricted from owning property in SoutheastAsia’s biggest economy, Indonesia is confronting a surge in local demand rather than the capital inflows that spurred record home prices in neighboring Singapore and Hong Kong. After the central bank imposed stricter loan-to-value ratios for mortgages, persistent price gains may prompt the government to raise some real-estate taxes, PT Bank Danamon Indonesia said.

“By giving a luxury tax, especially for high-end properties, it would help to curb home-price increases,” said Anton Gunawan, chief economist at Bank Danamon who was a candidate for the No. 2 job at the central bank this year. “Returns from property remain high as there’s an expectation that home prices are still rising.”

Read more

Leave a comment
by camelliacamellia on October 23, 2013  •  Permalink
Posted in Asia, Business, Currency, Economics, Indonesia
Tagged , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Posted by camelliacamellia on October 23, 2013

https://theasiancenturyreport.wordpress.com/2013/10/23/indonesia-home-prices-rise-as-demand-bucks-higher-rates/

Do Asian Stocks Climb as Won to Aussie Jump?

Source: Bloomberg

Source: Bloomberg

According to Bloomberg, Asian stocks climbed a fifth day, with the benchmark gauge trading near a five-year high, while emerging-market currencies strengthened on speculation the Federal Reserve will hold off cutting monetary stimulus until next year. Australia’s dollar jumped after inflation data.

The MSCI Asia Pacific Index rose 0.3 percent by 10 a.m. in Tokyo after earlier touching the highest level since June 2008. Standard & Poor’s 500 Index (SPA) futures dropped 0.1 percent after the gauge rose in New York. South Korea’s won climbed to the strongest level since January and Malaysia’s ringgit snapped a three-day decline. The Australian dollar strengthened to hold at a 4 1/2-month high. Copper retreated 0.4 percent after gaining yesterday while silver rose a seventh day.

Barclays Plc pushed out their estimate for the start of Fed tapering to March from December after data delayed because of the U.S. government shutdown showed employers added 148,000 workers in September, below the 180,000 increase projected in a Bloomberg survey. The 16-day shutdown cut U.S. growth and cost jobs, according to an economic aide to President Barack Obama. China’s Treasury holdings fell to a six-month low in August and Australian inflation quickened more than expected last quarter.

“The key takeaway for the Fed from the September U.S. non-farm payrolls is that the U.S. economy is in no shape to withstand a reduction in monetary stimulus,” Matthew Sherwood, head of investment markets research in Sydney at Perpetual Investments, which manages about $25 billion, said in an e-mail. “Expectations of tapering delays will continue to support markets.”

Read more

Leave a comment
by camelliacamellia on October 23, 2013  •  Permalink
Posted in Asia, Australia, Currency, Finance, Stock
Tagged , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Posted by camelliacamellia on October 23, 2013

https://theasiancenturyreport.wordpress.com/2013/10/23/do-asian-stocks-climb-as-won-to-aussie-jump/

Hong Kong banks’ marketing of FX-linked structured products sparks concern

Hong Kong banks’ marketing of FX-linked structured products sparks concern

If you walk into a bank you may spot signs in the teller queue displaying attractive deposit rates in a foreign currency.

If you ask about them, you’ll be whisked off to a special room to talk to an investment adviser, who will introduce you to an investment that is commonly sold in Hong Kong: the currency-linked deposit.

Make no mistake, these instruments are big business. A 2012 study by the Securities and Futures Commission found that currency-linked instruments comprised 65 per cent of all structured products sold to the public. That translates into annual sales of about HK$380 billion – and that excludes sales by banks.

Read mroe

Leave a comment
by admin on July 31, 2013  •  Permalink
Posted in Asia, China, Currency, Finance, Hong Kong, Investment
Tagged , , , , , , ,

Posted by admin on July 31, 2013

https://theasiancenturyreport.wordpress.com/2013/07/31/hong-kong-banks-marketing-of-fx-linked-structured-products-sparks-concern/

GLOBAL MARKETS-Nikkei up on election win, yen tempers rally

GLOBAL MARKETS-Nikkei up on election win, yen tempers rally

SYDNEY, July 22 (Reuters) – Japanese stocks led Asian markets higher on Monday after Prime Minister Shinzo Abe’s big election win over the weekend, but a rebound in the yen prompted some profit taking that knocked the Nikkei off highs.

Most other Asian share markets were modestly higher, although Hong Kong’s Hang Seng and mainland Chinese stocks lost a bit of ground.

European shares were seen opening higher. “This week’s economic data and earnings results could set a bullish tone in the markets,” Jonathan Sudaria, a dealer at Capital Spreads in London, wrote in a note.

Read more

Leave a comment
by admin on July 22, 2013  •  Permalink
Posted in Asia, Currency, Finance, Japan, Market
Tagged , , , , , ,

Posted by admin on July 22, 2013

https://theasiancenturyreport.wordpress.com/2013/07/22/global-markets-nikkei-up-on-election-win-yen-tempers-rally/

The Rule of Law and its Role in Achieving the Chinese Dream: To Be Discussed at China Leaders Forum 2013 on October 1st

The Rule of Law and its Role in Achieving the Chinese Dream: To Be Discussed at China Leaders Forum 2013 on October 1st

The Role of the New Generation of China Amidst China’s Expanding Global Influence

 

China has made an extraordinary journey along the road back to greatness. Hundreds of millions have been lifted out of poverty, hundreds of millions more have joined the new middle class. It is on the verge of reclaiming what it sees as its rightful position in the world. China’s global influence is expanding and within a decade its economy is expected to overtake America’s. The new head of the country, Xi Jinping, has evoked that rise promoting the “Chinese dream” evoking its American equivalent. Mr Xi’s priority will be to keep the economy growing and that means opening up China even more. What will be the role of the Chinese new generation? Will nationalism interfere with the rhetoric of the resurgent nation? Will corruption and official excess be curbed? Will the constitution become more powerful than the party?

See More

Leave a comment
by Innovator on June 5, 2013  •  Permalink
Posted in Asia, Asian conferences, Bank, Business, China, Currency, Economics, Finance, Industry, Investment, Market, Policy, Uncategorized, US
Tagged , , , , , , , , , , , , , , , , , ,

Posted by Innovator on June 5, 2013

https://theasiancenturyreport.wordpress.com/2013/06/05/the-rule-of-law-and-its-role-in-achieving-the-chinese-dream-to-be-discussed-at-china-leaders-forum-2013-on-october-china-poverty-middle-class-global-influence-economy-ovetake-americas-xi-jinping-chi/

Is U.S. Real Estate Headed Towards a Boom?: To Be Discussed at China Leaders Forum 2013 on October 1st

Is U.S. Real Estate Headed Towards a Boom?: To Be Debated at China Leaders Forum 2013 on October 1st

The Possibility of Chinese Real Estate Developers Moving to the United States

 

One of China’s biggest real estate developers, China Vanke, just announced its entry into the U.S. housing market, partnering with  New York-based Tishman Speyer Properties to build luxury condos in San Francisco. Changing demographics, pent-up demand and limited supply suggest that more housing is needed in the U.S., and savvy consumers are looking for new options in housing and lifestyle. The U.S. can expect to see about 1.3 million households newly formed each year for the next decade, making housing starts at an annual rate of around 900,000 inadequate; in the same way, interest rates for mortgages are very low at this moment. What else do developers from China see in the U.S. market? Is the suggested bubble in Chinese real estate encouraging local developers to move to the U.S.?

See More

Leave a comment
by Innovator on June 4, 2013  •  Permalink
Posted in Asia, Asian conferences, Bank, Business, China, Currency, Economics, Finance, Investment, Market, Policy, Regulation, Uncategorized, US
Tagged , , , , , , , , , , ,

Posted by Innovator on June 4, 2013

https://theasiancenturyreport.wordpress.com/2013/06/04/is-u-s-real-estate-headed-towards-a-boom-to-be-discussed-at-china-leaders-forum-2013-on-october-1st-chinas-real-estate-developers-u-s-housing-market-tishman-speyer-properties-condos-san-francisco-h/

Is Chinese Real Estate Headed Towards a Bubble?: To Be Debated at China Leaders Forum 2013 on October 1st

Is Chinese Real Estate Headed Towards a Bubble?: To Be Debated at China Leaders Forum 2013 on October 1st

The Future of Real Estate Investing Amidst Rising Prices

 

China’s own brand of a housing bubble has Beijing chasing its tail and struggling to catch it. Recently, rising prices led the government to introduce market-cooling measures and tighten its grip on the real estate sector, raising taxes by as much as 20% for transactions. The tax was first introduced in Beijing. But in a lot of smaller cities those measures were never as strict as in Beijing because local authorities wanted to protect the property market to ensure fiscal revenues.

Investors are watching the real estate market closely; if prices continue to rise it will put pressure on the economy as the government would be required to put restrictions on lending. Is this the beginning of a wave of distressed real estate investing? What types of developments will be the next big opportunities?

See More

Leave a comment
by Innovator on June 3, 2013  •  Permalink
Posted in Asia, Asian conferences, Business, China, Currency, Economics, Finance, Industry, Investment, Market, Policy, Regulation
Tagged , , , , , , , , , , , , , , , , , , , , , , , , , ,

Posted by Innovator on June 3, 2013

https://theasiancenturyreport.wordpress.com/2013/06/03/is-chinese-real-estate-headed-towards-a-bubble-to-be-debated-at-china-leaders-forum-2013-on-october-1st-chinas-brand-housing-bubble-beijing-rising-prices-government-market-cooling-raising-taxes-beijin/

Alice in Wonderland Scenario for Foreign Hedge Fund Managers?: To Be Debated at China Leaders Forum 2013 on October 1st

Alice in Wonderland Scenario for Foreign Hedge Fund Managers?: To Be Discussed at China Leaders Forum 2013 on October 1st

Wealthy Chinese investors present a huge opportunity for many of the world’s largest hedge fund managers.

China is targeting to expand hedge fund investing by licensing foreign shops; in fact, the Chinese government has asked the State Administration of Foreign Exchange to approve a US$5 billion quota for the planned qualified domestic limited partner scheme (QDLP), which will permit foreign hedge fund managers to set up domestic sales and marketing offices to raise RMB investment for the group’s offshore funds under management. While there are a number of specific requirements, the ability to boost AUM through

investments from wealthy Chinese investors presents a huge opportunity for many of the world’s largest hedge fund managers. How “excess” returns can be actually obtained in China? Are there best practices that can be transferred to the mainland? Will China’s beaten-down equity markets influence global managers’ decision making?

Leave a comment
by Innovator on May 31, 2013  •  Permalink
Posted in Asia, Asian conferences, Bank, Business, China, Currency, Economics, Finance, Hong Kong, Investment, Market, US
Tagged , , , , , , , , , , , , , , , , ,

Posted by Innovator on May 31, 2013

https://theasiancenturyreport.wordpress.com/2013/05/31/alice-in-wonderland-scenario-for-foreign-hedge-fund-managers-china-expand-hedge-fund-investing-licensing-foreign-shops-state-administration-of-foreign-exchange-planned-qualified-domestic-limited-partn/

Private Equity, Venture Capital and Capital Markets Investing in China: To Be Discussed at China Leaders Forum 2013 on October 1st

Private Equity, Venture Capital and Capital Markets Investing in China
From investors to large multinational corporations, China continues stirring interest, as the Chinese capital markets in general are still in a nascent stage of development. Private equity and venture capital firms have helped launch new companies and grow regional players into national competitors, usually taking only minority stakes, aided by the robust economic growth expected for the next decade, still relatively abundant opportunities, less competition and a positive government attitude. How long will it take for China to exhibit experienced pension funds and other big institutional investors, the backbone of private equity funding in the West? How capital markets will evolve and which investments opportunities are currently available?
Leave a comment
by Innovator on May 30, 2013  •  Permalink
Posted in Asia, Asian conferences, Bank, Business, China, Currency, Economics, Finance, Investment, Market
Tagged , , , , , , , , , , , , , , , , , , , , ,

Posted by Innovator on May 30, 2013

https://theasiancenturyreport.wordpress.com/2013/05/30/private-equity-venture-capital-and-capital-markets-investing-in-china-to-be-discussed-at-investors-multinational-corporations-china-interest-chinese-capital-markets-private-equity-venture-capital-firi/

« Older Posts