Wednesday, 11 February 2015

Asia today - stories from China

A Japanese market holiday a few stories from China where the Shanghai Composite remains above that 3,000 index point level (and with only a week or so until Chinese New Year I assume this will continue)...

I guess this comment could really mean anything going forward however:

PBOC’s Zhu: To Keep Prudent Monetary Policy In 2015 - To Maintain Proactive Fiscal Policy In 2015

As noted yesterday, there is a bit of fade in the Chinese economy and a report on Bloomberg even questioned the most compelling of Chinese economic developments to external investors: the consumer boom:

'The buying power of China’s middle class is not expanding as quickly as many anticipated. That’s pulling down overall per capita consumption growth, which dropped from 8.5 percent in 2009 to today's 7.1 percent. The trend is likely to continue' (link here)

Which logically is why the banks are fading their asset accumulation search

“Pressure on attracting deposits is coming off recently with a slew of easing measures -- at the same time, with the economy doing so badly, banks are finding it hard to lend that money out.”

'Direct trading between China's RMB and foreign currencies reached1.05 trillion yuan (170 billion U.Sdollarsin 2014, a report from China's central bankshowed.

Daily average direct transactions reached 10.2 billion yuan last year, 8.4 times more thanin 2013, according to the monetary policy report for the fourth quarter released onTuesday by the People's Bank of China.
The RMB now trades directly with eight foreign currenciesincluding the EuroAustraliandollar and Singapore dollar'

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