Shanghai Bureau Chief
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Jun 2, 2011

China local debt cleanup could spur more rebalancing

SHANGHAI (Reuters) – Beijing’s plan to shift hundreds of billions of dollars worth of debt away from local governments and revamp the way they raise cash could help wean the world’s second-biggest economy off trophy projects and other wasteful investments, paving the way for more sustainable growth.

That is, if things go according to plan.

Chinese regulators want to relieve provincial and municipal governments of 2-3 trillion yuan (188-282 billion pounds) in debt amassed through special financing vehicles used to fund infrastructure and other projects, sources with direct knowledge of the plan told Reuters on Tuesday.

Jun 1, 2011

Analysis: China local debt cleanup could spur more rebalancing

SHANGHAI (Reuters) – Beijing’s plan to shift hundreds of billions of dollars worth of debt away from local governments and revamp the way they raise cash could help wean the world’s second-biggest economy off trophy projects and other wasteful investments, paving the way for more sustainable growth.

That is, if things go according to plan.

Chinese regulators want to relieve provincial and municipal governments of 2-3 trillion yuan ($308-463 billion) in debt amassed through special financing vehicles used to fund infrastructure and other projects, sources with direct knowledge of the plan told Reuters on Tuesday.

May 18, 2011

Offshore yuan market foreshadows China bond market opening

SHANGHAI (Reuters) – If you want to know how Chinese authorities will open up the closely-regulated $3 trillion (1.8 trillion pound) onshore bond market, their actions in Hong Kong’s offshore yuan market should give you a clue.

The success of what market players call the CNH market shows that foreign investors of all stripes are hungry for yuan-denominated fixed-income products and that a more hands-off policy in the bond market may really help to grow it.

May 17, 2011

Analysis: Offshore yuan market foreshadows China bond market

SHANGHAI (Reuters) – If you want to know how Chinese authorities will open up the closely-regulated $3 trillion onshore bond market, their actions in Hong Kong’s offshore yuan market should give you a clue.

The success of what market players call the CNH market shows that foreign investors of all stripes are hungry for yuan-denominated fixed-income products and that a more hands-off policy in the bond market may really help to grow it.

Apr 29, 2011

Yuan breaks past 6.50/dollar for first time to close up, further gains seen

SHANGHAI, April 29 (Reuters) – China’s yuan breezed past
6.50 per dollar on Friday, surpassing the psychologically
important level for the first time and raising expectations that
Beijing will continue to let the currency strengthen quickly to
battle stubbornly high inflation.

While the 6.50 per dollar level is not significant from a
technical standpoint, Chinese media and economists are likely to
seize on it as evidence of how far the government has come in
allowing it to appreciate since its landmark currency reforms in
2005. It has gained 27.5 percent since then.

Apr 29, 2011

Yuan breaks past 6.50/dollar for first time, further gains seen

SHANGHAI, April 29 (Reuters) – China’s yuan breezed past
6.50 per dollar on Friday, surpassing the psychologically
important level for the first time and raising expectations that
Beijing will continue to let the currency strengthen quickly to
battle stubbornly high inflation.

While the 6.50 per dollar level is not significant from a
technical standpoint, Chinese media and economists are likely to
seize on it as evidence of how far the government has come in
allowing it to appreciate since its landmark currency reforms in
2005. It has gained 27.5 percent since then.

Apr 29, 2011

Yuan breaks past 6.50/dollar for first time, further gains seen

SHANGHAI, April 29 (Reuters) – China’s yuan breezed past
6.50 per dollar on Friday, surpassing the psychologically
important level for the first time and raising expectations that
Beijing will continue to let the currency strengthen quickly to
battle stubbornly high inflation.

While the 6.50 per dollar level is not significant from a
technical standpoint, Chinese media and economists are likely to
seize on it as evidence of how far the government has come in
allowing it to appreciate since its landmark currency reforms in
2005. It has gained 27.5 percent since then.

Apr 27, 2011

Non-insurance drives Ping An to record profit

SHANGHAI, April 27 (Reuters) – Ping An Insurance (Group) of
China (601318.SS: Quote, Profile, Research, Stock Buzz) (2318.HK: Quote, Profile, Research, Stock Buzz), the world’s second-largest life
insurer by market value, posted a record quarterly profit on
Wednesday, helped by rapid growth in non-insurance businesses.

Ping An’s (PNGAY.PK: Quote, Profile, Research, Stock Buzz) net profit during the January-March
period rose 28 percent to 5.81 billion yuan ($891.6 million)
from 4.55 billion a year earlier, in line with the expectations
of two analysts surveyed by Reuters.

Apr 22, 2011

Yuan continues climb to end at record; revaluation seen unlikely

SHANGHAI (Reuters) – The yuan ended at a fresh record high on Friday as the central bank continued to allow the currency to rise to help fight imported inflation, but onshore traders remained convinced it would not resort to any one-off revaluation despite rumors overseas.

The People’s Bank of China (PBOC) has set repeated record highs for the yuan’s daily mid-point over the last several weeks, engineering an accelerated rise against the dollar that means it has now gained nearly 5 percent since it was depegged last June.

Mar 28, 2011

P&G, Unilever up China prices and fuel inflation fears

SHANGHAI (Reuters) – Consumer goods giants Procter & Gamble and Unilever will both raise detergent and soap prices in China by up to 15 percent next month, local media reported, underscoring the battle the government faces with inflation.

Policy makers in the world’s second-largest economy have been racing to contain consumer prices, which rose 4.9 percent in February from a year earlier, to prevent inflationary expectations from settling in and contributing to further rises in the prices of everything from broccoli to beer.

    • About Jason

      "Jason leads Reuters' coverage of China's financial markets from Shanghai. Prior to moving there at the start of 2010, he reported on the Chinese economy and policy from Beijing, where he lived for a decade."
      Joined Reuters:
      2005
      Languages:
      Mandarin, German
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