09-13-2015, 11:54 PM
China is tightening capital controls following a devaluation of its yuan currency, media reports say, as worries about financial outflows rise. The State Administration of Foreign Exchange had ordered financial institutions to increase checks and boost controls on foreign exchange transactions, especially over-invoicing of exports which is used to hide capital outflows, the Financial Times on Wednesday quoted unnamed sources and an internal memo as saying.
China tightens capital controls: reports | Business Spectator
Everyone has been trying to figure out why the PBoC shed a record $94bn in FX reserves in August. But did you know their own spokesman has been offering an explanation to the market directly? Asked why the long-term sale of foreign exchange to Chinese banks this month, the PBoC spokesman replied
So where did that Chinese dollar liquidity end up? | FT Alphaville
Chief economist Willem Buiter now thinks the most likely scenario is one in which China tugs the world into a "global recession."
CITI: China is about to pull everyone into a 2-year 'global recession' - Business Insider
The progress of recent decades belies an industrial sector that in truth has become quite seriously uncompetitive by international standards. Many of China's factories need complete retooling to keep up with developments in robotics and other forms of mechanization. Yet if industry is to get less labor intensive, this only further steepens the challenge of employment creation.
China has created a monster it can't control - Business Insider
China's imports shrank far more than expected in August, falling for the 10th straight month. Imports fell 13.8 percent from a year earlier, more than the 8.2 percent drop economists had expected.
Futures rise on hopes of additional Chinese stimulus | Reuters
After a big sell-off in 1963, authorities intervened. In 1964 and 1965, two entities were established to prop up the market, documents compiled by the Bank of Japan show. Commercial banks helped fund the first vehicle, which spent 193.6 billion yen on shares, with the central bank pitching in after their money ran out. The second vehicle bought another 234.9 billion yen, with the BOJ shouldering 95 percent of the cost.
China's Turmoil Could be Just a Blip, If 1960s Japan Is a Guide - Bloomberg Business
Chang's client is one of the group of wealthy Chinese caught in between a rock and a hard place: Leave their assets in China to potentially weather additional market volatility and yuan devaluations — or put it in real estate that is now more expensive than just a few weeks earlier.
Chinese super-rich flood US real-estate market - Business Insider