China latest publications
The annual “two-sessions” of China, namely the National People’s Congress (NPC) and the Chinese People’s Political Consultative Conference (CPPCC), commenced in Beijing on March 4th 2021 and will be last for around one week, which are always the top priority in China’s political agenda every year.
Chinese authorities’ 2016-2018 corporate deleveraging campaign seems to have given way to the escalating China-US tensions and the COVID-19, however, it restarts now in a more "passive" way.
Two important reasons could contribute to the recent interbank liquidity crunch: the PBoC’s intention to alert the recent soaring stock market, and more importantly, the temporary failure of the central bank’s calibrated liquidity operation model under the recent challenging market environment.
This report is trying to answer the three questions: What is the underlying logic of the ongoing RMB appreciation trend? Is the trend sustainable as the global economy normalizes? And where will the RMB exchange rate go at end-2021?
Vaccination, accommodative monetary policy with "no sharp turnaround", possible alleviation of China-US tension under Biden’s presidency and deflationary environment give Chinese authorities a chance for a short respite in 2021.
December 31, 2020
China | EU-China Comprehensive Agreement on Investment: a game-changer to superpower game
EU and China announced the accomplishment of a long-awaited EU-China Comprehensive Agreement on Investment (EU-China CAI) on December 30 2020, in a move to open up more investment opportunities between the two economies.
Better settle in after a long haul. After experiencing over-deleveraging and economic slowdown in 2017, China-US trade war since 2018, 2019 African Swine Flu and this year’s most unprecedented coronavirus pandemic flare-up and the arduous work of containing it, Chinese economy might have a previous respite in 2021.
The meeting of the Political Bureau of the Communist Party of China Central Committee presided by President Xi concluded on December 11, 2020, emphasizing the recent economic policy focus and pointing the direction of the next year’s policy stance.