Chief Economics Correspondent, China
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Jun 11, 2010

Q+A – As pressure builds, will China let yuan rise?

BEIJING (Reuters) – Like the risk-on, risk-off volatility that has buffeted global markets this year, China’s currency policy has been subjected to bouts of pressure and criticism from abroad interspersed with periods of calm.

Beijing is once again facing a pressure-on phase in the cycle, as underscored by U.S. Treasury Secretary Timothy Geithner’s harsh words on Thursday about the yuan.

Jun 11, 2010

Under pressure, China wealth fund looks short-term – sources

HONG KONG/BEIJING (Reuters) – Under pressure from Beijing to post better returns, China’s sovereign wealth fund has placed a greater emphasis on short-term performance this year, two sources with direct knowledge of the fund’s strategy said.

That is a shift for China Investment Corp (CIC), which manages some $300 billion, after consistently emphasising its strategy of seeking long-term returns, and may mean the world’s fifth largest state-run investor may prefer more liquid investments such as equities.

Jun 11, 2010

China inflation picks up but not all see tighter policy

BEIJING (Reuters) – Chinese inflation quickened to a 19-month high in May, but a moderation of growth in factory production and capital spending could further ease worries that the world’s third-largest economy runs the risk of boiling over.

Consumer prices rose 3.1 percent in the year to May compared with a 2.8 percent annual rise in April, confirming a Reuters report from Wednesday and exceeding the official year-average target of 3 percent.

Jun 10, 2010

Chinese exports leap, put yuan back under microscope

BEIJING (Reuters) – China’s exports jumped in May, reassuring investors about the economy’s strength but putting pressure on U.S. President Barack Obama to placate critics who say Beijing is keeping the yuan unfairly undervalued.

Imports also grew robustly, testifying to the underlying momentum of the world’s third-largest economy despite government steps to cool the red-hot property market.

Jun 10, 2010

Euro will survive debt crisis – China pension fund

TIANJIN, China (Reuters) – The euro will be able to weather the sovereign debt crisis, the Chinese national pension fund chief said on Thursday, helping spark a sharp rebound in the European currency from the day’s lows.

Dai Xianglong, chairman of the $114 billion National Social Security Fund, also said the large fiscal deficit in the United States remained a serious concern and that it could dent the value of the China’s foreign exchange reserves.

Jun 4, 2010

Chinese exporters ditch wounded euro for dollars

BEIJING (Reuters) – Chinese exporters who made a big push only a year ago to bill in euros are increasingly turning their backs on the wounded European currency and demanding dollars instead.

By contrast, Beijing last week said a report it was reviewing the euro portion in its mountain of foreign exchange reserves was groundless and it calmed markets by saying that Europe remained a key investment market.

Jun 2, 2010

Why labour unrest is good for China and the world

BEIJING (Reuters) – A rare burst of labour unrest in China has been resolved with hefty pay increases, illustrating how the balance of power in the country’s vast factories is slowly but surely tilting towards workers.

Rising wages in the workshop of the world might seem to pose unsettling implications for the global economy in the form of thinning profits for companies and cost inflation for consumers.

Jun 1, 2010

As speculative fever rages, China bursts bean bubble

BEIJING (Reuters) – Germany has banned naked short-selling and the United States may block banks from proprietary trading. But China has taken rules aimed at ensuring market stability to new, tastier lengths.

It has launched a strike-hard campaign against speculators driving up vegetable prices.

May 27, 2010

China says Europe key market

BEIJING (Reuters) – Europe remains a key investment market for China’s foreign exchange reserves, the Chinese central bank said on Thursday, helping to soothe markets unnerved by a report that it was reviewing its euro-zone bond holdings.

The Financial Times said on Wednesday that China’s State Administration of Foreign Exchange (SAFE) was meeting foreign bankers because of concerns about its exposure to debt troubles in Europe.

May 27, 2010

China says Europe key market, review report groundless

BEIJING, May 27 (Reuters) – Europe remains a key investment
market for China’s foreign exchange reserves, the Chinese
central bank said on Thursday, helping to soothe markets
unnerved by a report that it was reviewing its euro-zone bond
holdings.

The Financial Times said on Wednesday that China’s State
Administration of Foreign Exchange (SAFE) was meeting foreign
bankers because of concerns about its exposure to debt troubles
in Europe. [ID:nN26249716]

    • About Simon

      "Simon has been chief economics correspondent for China since October 2010. He joined Reuters in 2006 and spent a year in London before being posted to Beijing. Simon has a B.A. from McGill University in Canada and a Master's from the University of Oxford."
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