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Technology ministry, Ping An Bank announce $30bn electronics fund

China’s Ministry of Industry and Information Technology has announced it will partner with Ping An Bank via an industry group it controls to establish a US$30 billion fund to support the country’s electronics industry, The New York Times reported, citing state media. The signing ceremony was attended by representatives from representatives of major Chinese tech […]

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Banking & Finance Economics & Trade Investment Law & Regulation

PBOC notes suggest slow going for interest rate liberalization in China

Last week saw three essays by department heads at the People’s Bank of China highlight the central bank’s focus on replacing its old lending cap with a new policy benchmark interest rate, suggesting China is still grappling with the transition away from frequent open-market operations it has historically used to implement monetary policies, South China […]

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Banking & Finance Economics & Trade Law & Regulation

Central bank ends yuan fix's eight-session weakening streak

China’s central bank has ended an eight-day streak of raising the yuan’s trading band to weaken the currency, setting the daily reference rate 0.02% stronger than the previous day at 6.5636 per dollar, The Financial Times reported. Confusion has mounted recently over how the People’s Bank of China sets the fix: While the bank claims […]

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Banking & Finance Economics & Trade

China's forex reserves rell by record $107.9bn in December

China’s foreign exchange reserves plunged by US107.9 billion in December to close the year at US$3.33 trillion, down from US$3.84 trillion at the end of 2014, South China Morning Post reported. The sudden end of a soft peg against the US dollar in August resulted in sharp depreciation for the yuan, forcing the People’s Bank […]

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Banking & Finance Economics & Trade Law & Regulation

PBOC moves to change role of banks' reserve requirement ratios

A recent announcement from the China’s central bank outlining a new Macro Prudential Assessment (MPA) system indicates that the official reserve requirement ratio for commercial banks will increasingly be used to enforce financial stability instead of as a tool to manage liquidity, Bloomberg reported. Ma Jun, chief economist of the People’s Bank of China research bureau, […]