China's Yuan, Shares Fall as Trade Row Overshadows Policy Shift

Moxy Ying, Tian Chen and Jeanny Yu
The onshore yuan slipped 0.17 percent to 6.8402 per dollar as of 4:02 p.m., while the Shanghai Composite Index closed down 1.3 percent at its lowest since February 2016. The ChiNext gauge of small caps and tech stocks fared even worse, tumbling 2.8...

China Stocks at Risk of Outpacing Fundamentals

Gabriel Wildau and Emma Dunkley
Financial Times
As the Chinese stock market’s disastrous 2015 boom-and-bust fades from memory, investors are in a mood to buy. Chinese stocks both on the mainland and in Hong Kong outperformed the S&P 500 last year, as economic growth accelerated for the...

How Trump Could Already Be Affecting Monetary Policy in China

Silvia Amaro
Chinese officials might be trying to drain liquidity from their economy but the central bank remains fearful of raising interest rates too quickly, according to one strategist who suggests President Donald Trump might be indirectly influencing...

China’s Latest Debt Crackdown Just Delays More Serious Action

Anjani Trivedi
Wall Street Journal
China’s dilemma: how to manage a huge debt mound while maintaining loose monetary policy

Let’s Face It, China Runs U.S. Monetary Policy Now

Rana Foroohar
What’s happening in China right now has limited the ability of the Federal Reserve Bank to do what’s right for the American economy.

A Partnership with China to Avoid World War

George Soros from New York Review of Books
International cooperation is in decline both in the political and financial spheres. The U.N. has failed to address any of the major conflicts since the end of the cold war; the 2009 Copenhagen Climate Change Conference left a sour aftertaste; the...

Exclusive: China Ready to Cut Rates Again on Fears of Deflation — Sources

Kevin Yao
Friday's surprise cut in rates, the first in more than two years, reflects a change of course by Beijing and the central bank, which had persisted with modest stimulus measures before finally deciding last week that a bold monetary policy step...



China’s Holdings of U.S. Securities: Implications for the U.S. Economy

Wayne M. Morrison, Marc Labonte
Peony Lui
Congressional Research Service
Given its relatively low savings rate, the U.S. economy depends heavily on foreign capital inflows from countries with high savings rates (such as China) to meet its domestic investment needs and to fund the federal budget deficit. The willingness...



Staff Report of the People’s Republic of China—Hong Kong Special Administrative Region: 2010 Article IV Consultation Discussions

International Monetary Fund (IMF)
Two potent forces continue to influence Hong Kong SAR's prospects: the unprecedented monetary policy easing in the United States and the solid domestic recovery, in part driven by spillovers from the Mainland. While the substantial expansion of...

Sinica Podcast


Newsweek Bid, Renminbi Revaluation

Kaiser Kuo, Evan Osnos & more from Sinica Podcast
In a sudden move clearly intended to stave off criticism at the G20 meeting in Toronto, China loosened the yuan’s twenty-three-month-old peg to the American dollar earlier this month, allowing its currency to appreciate against the greenback. This...



People’s Republic of China: 2010 Article IV Consultation-Staff Report; Staff Statement; Public Information Notice on the Executive Board Discussion

International Monetary Fund (IMF)
This is the staff report for the 2010 Article IV consultation, prepared by a staff team of the IMF, following discussions that ended on July 1, 2010, with the officials of the People's Republic of China on economic developments and policies...



China’s Currency: A Summary of the Economic Issues

Wayne M. Morrison, Marc Labonte
Peony Lui
Congressional Research Service
Some Members of Congress charge that China’s policy of accumulating foreign reserves (especially U.S. dollars) to influence the value of its currency constitutes a form of currency manipulation intended to make its exports cheaper and imports into...



Macroeconomic Implications for Hong Kong SAR of Accommodative U.S. Monetary Policy

Papa N'Diaye
International Monetary Fund (IMF)
This paper discusses the potential macroeconomic implications for Hong Kong SAR of accommodative monetary policy in the United States. It shows, through model simulations, that a resumption of the credit channel in Hong Kong SAR has the potential to...



Broad Money Demand and Asset Substitution in China

Ge Wu
International Monetary Fund (IMF)
Recent changes to China's financial system, in particular ongoing interest rate liberalization, gradual movement toward a more flexible exchange rate regime, and rapid development of capital markets, have changed substantially the environment...



China: Strengthening Monetary Policy Implementation

Bernard J. Laurens and Rodolfo Maino
International Monetary Fund (IMF)
The People's Bank of China (PBC) has made great strides in modernizing its monetary policy frameworks, but their effectiveness will diminish as the sophistication of the economy increases. Empirical evidence supports maintaining a reference to...



A Framework for Independent Monetary Policy in China

Marvin Goodfriend and Eswar Prasad
International Monetary Fund (IMF)
As China's economy becomes more market-based and continues its rapid integration into the global economy, having an independent and effective monetary policy regime oriented to domestic objectives will become increasingly important...