People’s Bank of China (PBOC) Governor Zhou Xiaochuan defended the gap between China’s deposit and lending rates and denies that the constitute a hidden subsidy to banks. China’s one-year benchmark lending rate is 5.31%, compared with a one-year benchmark deposit rate of 2.25%. Beijing has committed to further liberalizing the country’s interest rate system. In [...]
Xia Bin, an academic adviser to the People’s Bank of China, told a weekend forum in Shanghai that Beijing will maintain its current mixture of monetary and fiscal policies despite moderating economic growth and slowing property price growth. Following the introduction of cooling measures targeting property starting in April, housing transactions have slumped over the [...]
The People’s Bank of China (PBoC) has launched a pilot project to allow more foreign participation in the country’s largely closed domestic interbank bond market. Foreign central banks, lenders in Hong Kong and Macau that already conduct renminbi clearing and overseas banks that participate in the cross-border trade settlement scheme will be permitted to trade [...]
China’s US Treasury holdings fell for the second month in a row in June. According to the Treasury Department’s monthly report on debt holdings, China reduced its exposure by $24 billion to $843.7 billion, a decline of 2.7%. Total holdings of Treasury securities rose $45.6 billion to $4 trillion. China remains America’s largest creditor, although [...]
The Chinese renminbi posted its largest decline in seven weeks on speculation that Beijing is preparing to counter appreciation on concerns about the domestic economy. Beijing is concerned about macroeconomic data that show growth in industrial output slowing in July. The decision is also likely due in part to the recent appreciation of the dollar’s [...]
China’s central bank said on Thursday that the nation’s rapid economic growth would gradually level off, and that it faces challenges on how to manage the economy. The People’s Bank of China (PBoC) noted its dilemma of managing macroeconomic control policies, referring to measures implemented to rein in property prices and to curb bank lending, [...]
China has further relaxed gold market restrictions, increasing the number of banks permitted to trade the yellow metal as the country’s investors pour record amounts of money into gold. Chinese investors bought 73 tonnes of bullion last year, up from 18 tonnes in 2007. The trend is becoming a significant factor on global prices. China, [...]
People’s Bank of China (PBoC) officials told the International Monetary Fund (IMF) at a consultation yesterday that they see little need to raise interest rates. According to an IMF statement, PBoC officials said that “with a benign inflation outlook there was less need for higher nominal interest rates.” The PBoC, which hasn’t raised interest rates [...]
The International Monetary Fund (IMF) chose not to say that the renminbi is “substantially” undervalued in its annual report on China following significant disagreement among directors over the Chinese currency. Although the phrase was used in the 2009 report and it was expected to appear in this year’s edition, some directors expressed concern that the currency determination [...]
Hu Xiaolian, deputy governor of the People’s Bank of China (PBoC), said on Monday that the renminbi’s peg to the US dollar has “severely challenged” China’s monetary policy and contributed to inflationary pressure. “With China’s rapid economic growth, foreign-exchange inflows have accelerated, and increases in financial liquidity create potential of heightened inflation expectations and speculation in [...]
