Conference Notes from RMB: Unlocking the Potential II

Source: visitmelbourne.com

In the first installment of our RMB thought leadership series, we we explored the current status of Chinese capital account liberalisation, aspects of RMB internationalisation to date, and its effect on Australian markets. At the second in our RMB Thought Leadership conference series in Melbourne, noting the changing landscape both for Chinese investors and global portfolio managers, we examined the status of Chinese capital account liberalisation in the context of investment flows between…

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Chinese Foreign reserve balances spell relief

Source: IMF

One ongoing debate between market participants has been whether recent policy measures provided the necessary response to Chinese market volatility earlier this, or whether the latter is indicative of a massive policy misstep. Several Australian fund managers have voiced to us the concern that the latter might be all too likely, and have used the concern to justify remaining on the sidelines with regard to China. However, recent Chinese foreign…

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Victoria, Australia: China High Net Worth Beneficiary

Source: visitmelbourne.com

One of the outstanding questions in Australia when in regard to bilateral free trade agreements (such as CHAFTA), with funds passporting arrangements (such as the Asia Regional Funds Passport) and other mutual recognition arrangements is how they stand to benefit Australian businesses and create Australian jobs. State officials in Victoria must ask the same question regarding the Memorandum of Understanding signed last November designating Sydney as an RMB hub. Associated…

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MRF, ARFP and opportunities for Australian fund management

Source: Thomson Reuters

MRF: a “game changer” One of the recent steps in China’s gradual programme of capital account deregulation was the Mainland- Hong Kong Mutual Recognition of Funds (MRF) initiative, sealed by the signing of a memorandum of understanding between the China Securities Regulatory Commision (CSRC) and Hong Kong Securities and Futures Commision (SFC). The programme, which went live in July of this year, had attracted nine Hong Kong based funds as…

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V is for (RMB) Volatility

Source: Zerohedge

    The widespread influence of Chinese volatility In our most recent note, we discussed the growing influence of Chinese economic and market developments on markets world-wide (including Australia). In Chart 1 we witness the elevated correlation between the S&P500 and Shanghai A shares from late 2014 onward, as well as similarly high correlations between Shanghai A shares and the ASX since mid-2015.   This week, we focus on a…

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Shifting market dynamics: China as market mover

Note2

Chinese growth worries and the tail that wags the dog Once upon a time, US payroll data (and perceived implications for FOMC policy) exercised outsize one-way influence on the short-term fortunes of global markets – but things seem to have changed.  Market players and policymakers are displaying caution that US macroeconomic data might be influenced by uncertainty elsewhere, particularly in China. For instance, market talk of late featured speculation that caution in hiring in…

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The RMB in the SDR and Why Australia Should Care

Shanghai_14336362076_6e5010ac06_b

  Source: Thomson Reuters   The politics of the RMB in the SDR:  Though US-China summits tend typically to be fraught with geopolitical tensions, the Xi-Obama summit last week provided one clear signal of solidarity on a seemingly minor topic, but one that might have eventual wide-reaching impact.  The Obama administration softened its insistence upon Chinese domestic reform, instead showing greater support of the inclusion of the Chinese currency in the Special Drawing Rights basket…

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THOMSON REUTERS – EUROPACIFICA THOUGHT LEADERSHIP SERIES CONFERENCE 1: SYDNEY 15 JUNE

Conference Notes from RMB: Unlocking the Potential China is responsible for approximately 10% of Global GDP, is the world’s largest exporter and second largest importer, accounting for 12k of global trade in 2013. As Australia’s largest trading partner, China’s ongoing expansion and pace of RMB internationalisation and capital account reform will create numerous opportunities for the Australian economy. In conjunction with Thomson Reuters, we have released a conference summary  of…

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