The People’s Bank of China has scaled back its open-market
operations pretty dramatically in April. After draining RMB602 billion of
liquidity in March through bill and repo sales, the central bank has drained RMB124
billion through April 17. The bank only drained RMB14 billion last week, down
from RMB218 billion three weeks ago. There are several factors behind the
slowdown [...]
I was at a conference in Sao
Paolo, where I was lucky enough to share the stage with a number of
luminaries, including Pedro Malan. Needless to say the subject of China
is hot in Brazil. There is a great deal of soul-searching about the
impact of Chinese commodity purchases on Brazil’s economy, along with a
great deal [...]
Exchange-traded derivatives originally only did commodity underlyings.
The world’s first financial underlying was : currencies. On 16 May
1972, the Chicago Mercantile Exchange started trading in currency
futures. To any finance person, nothing is simpler than a currency
futures, but unfortunately in India a mixture of ignorance, ideology
and [...]
One counterpoint I often hear about the renminbi’s role in rebalancing
China’s economy is “but hey, look at Japan: It’s had a flexible exchange
rate for years and, yet, its growth is still reliant on external
demand”.
I am in China this week to present our new Asia-Pacific
Regional Economic Outlook in Shanghai. I remain as impressed as
ever by China’s energy and vibrant growth, an impression that is
reinforced every time I return to this country.
One nice things about writing a
blog is that I don’t need to be topical. Not only can I write
worriedly about rising contingent debt levels three or four years before
they become obvious, but I can also revisit a controversy that took
place March involving Paul Krugman and Stephen Roach. I revisit this
old controversy because although the [...]
The massive investments by private equity firms
coupled with
an initial public offer (IPO) by SKS Microfinance has ignited a debate
about
the ethics and objectives of microfinance institutions (MFIs) in India.
The SKS Microfinance, the largest MFI in India
with substantial investments
by private equity firms and hedge funds, is planning to raise Rs.11,000
million
($250 million) through an IPO.
[...]
China’s National Bureau of Statistics released the March real
estate data today, and the record 11.7% y/y increase in the 70-city price
index is making waves. The major coastal cities saw large increases (Shenzhen,
20.1%; Beijing, 12.3%; Shanghai, 10.7%), while central and western cities
typically saw smaller gains. The rise in property prices in the two cities on
Hainan Island [...]
The following article is
the first of three examining the recent unrest
in Kyrgyzstan
and its implications. Part 2 tomorrow will deal with the regional
fallout
from the “Tulip Revolution V2.0” and Part 3 will examine in detail Washington’s
highest priority in Kyrgyzstan
- its ongoing access to the ManasTransitCenter
airbase.
The extraordinary events of last week in
Kyrgyzstan, which
saw the overthrow of President Kurmanbek [...]
(Part 2 in a three-part series)
The recent unrest in Kyrgyzstan
has largely been portrayed as an epic clash between U.S.
and Russian interests.
That said, interest in events in Bishkek extend far beyond Kyrgyzstan
throughout the regional and one should expect the following voices to add their
concerns as the situation evolves. While largely overlooked by media coverage,
their influence could [...]