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03-01-2017, 09:37 PM
(This post was last modified: 03-01-2017, 09:42 PM by BlueKelah.)
Wow sounds like China finally putting the hammer down on forex.
China Gets Strict on Forex Transactions to Stop Money Exiting Abroad
At risk of capital flight, China marked the new year with extra requirements for citizens converting yuan into foreign currencies.
The State Administration of Foreign Exchange, the currency regulator, said in a statement Dec. 31 that it wanted to close loopholes exploited for purposes such as money laundering and illegally channeling money into overseas property.
While the regulator left unchanged quotas of $50,000 of foreign currency per person a year, citizens faced extra disclosure requirements from Jan. 1.
The annual limits for individuals’ currency conversions reset at the start of each year, potentially aggravating outflow pressures that intensified in 2016 as the yuan suffered its steepest annual slump in more than two decades. An estimated $762 billion flowed out of the country in the first 11 months of last year, according to a Bloomberg Intelligence gauge, pumping up residential property markets from Vancouver to Sydney. Some money also spilled across the border into Hong Kong insurance products.
Key elements of the new requirements:
- Customers must pledge money won’t be used for overseas purchases of property, securities, life insurance or investment-type insurance. While such rules aren’t new, citizens previously didn’t have to sign such a pledge
- Customers must give a more detailed account of the planned use of funds, such as business travel, overseas study, family visits, medical treatment, merchandise trade or purchases of non-investment insurance policies, including the timing, by year and month
- Violators of foreign-exchange rules will be be added to the currency regulator’s watch list, denied foreign-exchange quota for three years and subjected to anti-money-laundering investigations
- Customers must confirm compliance with restrictions on money laundering, tax evasion and underground bank dealings
- Customers must now confirm they aren’t lending or borrowing quotas to or from other citizens
The measures may curb enthusiasm for purchases of dollars and ease pressure for capital outflows, according to Zhao Yang, chief China economist at Nomura Holdings Inc. in Hong Kong.
The yuan fell 0.1 percent to 6.9554 per dollar on Tuesday, approaching an 8 1/2 year low.
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China Reserves Slumped $320 Billion Last Year as Yuan Tumbled
China’s foreign currency holdings fell for a sixth month in December, bringing last year’s drop to $320 billion as the yuan posted its steepest annual slide in more than two decades.
Reserves decreased $41.1 billion to a fresh five-year low of $3.01 trillion, the People’s Bank of China said Saturday. That was in line with estimates in Bloomberg’s survey of economists.
The central bank’s effort to stabilize the yuan was the main reason for the drop last year, the State Administration of Foreign Exchange said in a statement. The world’s largest stockpile has fallen for 10 straight quarters from a record $4 trillion in June 2014, while eroding confidence in the yuan has pushed the currency to the lowest levels in eight years.
More details in https://www.bloomberg.com/news/articles/...an-tumbled
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09-01-2017, 01:35 PM
(This post was last modified: 09-01-2017, 01:35 PM by BlueKelah.)
looks like they can't make up their minds to use up their foreign reserves or to let their currency depreciate lol...
Back to 6.9+ to the USD again. Heard they are starting to clamp down on Bitcoin as well.
China weakens yuan following last week's jump
China's yuan resumed its downward slide Monday as officials weakened its value against the dollar by the most in six months, having hiked it at the end of last week.
The People’s Bank of China set the reference rate of the yuan -- also known as the renminbi -- at 6.9262 to the dollar, down 0.87 percent from Friday’s fixing, according to data from the Foreign Exchange Trade System.
It marked the biggest single-day drop since June and comes right after Friday saw the biggest jump of the fixing -- by 0.92 percent -- since 2005.
China only allows the tightly controlled yuan to rise or fall two percent on either side of the daily fix, to prevent volatility in the currency, which is near its lowest levels in eight years.
Michael Every, Robobank Hong Kong’s head of Financial Markets Research of Asia-Pacific, told AFP Monday’s drop “just shows everything last week ultimately was for nothing”.
“Lots of people are expecting weaker (yuan)... Today’s fix just underlines that said weakness is coming, and soon.”
The falling currency shaved China's foreign exchange reserves by a tenth last year, official data showed over the weekend.
In December the country's stockpile of foreign currency -- the world's largest -- shrank by $41.1 billion to $3.01 trillion, the State Administration of Foreign Exchange (SAFE) said.
The central bank has spent heavily to stabilise the yuan in the face of surging capital outflows and a strengthening dollar. The unit fell seven percent against the greenback last year. China said last month it would almost double the number of foreign currencies it uses to determine the yuan's official value, thereby diluting the dollar's role, and has imposed a range of measures to curb capital flight abroad.
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chinese-banks-liquidity-squeeze-worse-than-you-think
https://www.bloomberg.com/gadfly/article...-you-think
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Pretty good indicator world economy still pretty flat/bad.
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China’s Exports Remain Tepid as Trump Trade Challenge Looms
China’s exports remained subdued as soft global demand weighed on sales, raising uncertainties for the nation’s external sector as it braces for potential trade frictions with the U.S. under a Donald Trump presidency.
Overseas shipments dropped 6.1 percent from a year earlier in December, the customs administration said Friday. Imports rose 3.1 percent, leaving a $40.8 billion trade surplus.
"External demand remains sluggish," said Wen Bin, a researcher at China Minsheng Banking Corp. in Beijing. "The outlook for exports this year doesn’t look very promising," he said, citing slowing global trade amid rising protectionism and uncertainties in U.S. trade policy.
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Things are slowing down at Wanda as well..
China’s Wanda Posts First Sales Decline in at Least 11 Years
Dalian Wanda Group Co.’s revenue fell for the first time in at least 11 years after a slump in its property business outweighed growth from entertainment operations at billionaire Wang Jianlin’s conglomerate.
Sales, which includes property-contracted sales, declined 14 percent in 2016 from a year earlier, according to a Wanda statement on Saturday, more than a January 2016 forecast of a 12 percent drop. Revenue at Dalian Wanda Commercial Properties Co., the group’s real-estate unit, declined 25 percent to 143 billion yuan ($20.7 billion).
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Rustbelt China Province Admits It Faked Fiscal Data From 2011-14
The rust-belt province of Liaoning fabricated fiscal numbers from 2011 to 2014, local officials have said, raising fresh doubts about the accuracy of China’s economic data just days ahead of the release of the nation’s full-year growth report.
City and county governments in the northwestern region committed fiscal data fraud in the period, Governor Chen Qiufa said at a meeting with provincial lawmakers Tuesday, according to state-run People’s Daily. Fiscal revenues were inflated by at least 20 percent, and some other economic data were also false, the paper said, without specifying categories.
More details in https://www.bloomberg.com/politics/artic...om-2011-14
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Not surprising. My friend were in one of their busy port. Basically she was shocked to see the place empty. It use to be full of container moving goods.
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(18-01-2017, 02:22 PM)corydorus Wrote: Not surprising. My friend were in one of their busy port. Basically she was shocked to see the place empty. It use to be full of container moving goods. Was that empty port in Liaoning or other state?
I reckon everyone is making fake figures for the gov. To reach their GDP target. I reckon real GDP is 3 to 4% range at best. Export keep contracting, I dun believe they can maintain 6% plus GDP growth loh.
Only nOw with tightening regulations the worms coming out of the can. Maybe suddenly get recession in China...
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6 Things China can Do Next to Curb OUtflows
1. Limit Overseas Spending
2. Pressure Exporters
3. Tax Currency Transactions
4. Clamp Down on Bitcoin
5. Control Banks
6. Encourage Inflows
Stemming the Tide: Six Things China Can Do Next to Curb Outflows
As cash continues to flood out of China, expectations are growing that the authorities will erect higher barriers.
With the nation’s capital outflows last year estimated at $728 billion by Standard Chartered Plc, and the yuan predicted to continue declining against the dollar in 2017, analysts have been casting forward to what the authorities may do next to stop funds from fleeing.
Recent measures include restrictions on buying insurance products in Hong Kong, limiting overseas acquisitions and investments, and demanding more details from citizens when converting their annual quota into foreign exchange.
More details in https://www.bloomberg.com/news/articles/...itcoin-art
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