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Economy
In reply to the discussion: STOCK MARKET WATCH - Thursday, 22 March 2012 [View all]Demeter
(85,373 posts)31. China Quietly Relaxes Controls on Foreign Capital
http://www.nytimes.com/2012/03/21/business/global/china-quietly-relaxes-controls-on-foreign-capital.html?_r=1
The Chinese government has begun making it much easier for foreign investors to put money into Chinas stock market and other financial investments, in a slight relaxing of more than a decade of tight capital controls. The move, not publicly announced but disclosed by some private money managers, indicates that Chinese officials are eager to counter a rising flight of capital from the country, a worsening slump in real estate prices, a weak stock market and at least a temporary trade deficit caused by a steep bill for oil imports. Those concerns have evidently started to offset fears of the potentially inflationary effects of big inflows of foreign cash.
Chinese securities officials made a series of phone calls to top fund managers outside China late last week telling them of the relaxation of the capital restrictions, according to several money managers. But if the fund managers wanted to increase their requested allotments for investing in China, they were told they would have to answer almost immediately a sign of the governments haste to come up with a plan to reassure financial markets.
It literally was phone calls coming in at 4 and you had to give an answer by 5:30, said the chairman of a financial company heavily invested in China. He insisted on anonymity to avoid offending regulators.
WE HAVE A NEW "CHINA SYNDROME" PANIC HERE....
The Chinese government has begun making it much easier for foreign investors to put money into Chinas stock market and other financial investments, in a slight relaxing of more than a decade of tight capital controls. The move, not publicly announced but disclosed by some private money managers, indicates that Chinese officials are eager to counter a rising flight of capital from the country, a worsening slump in real estate prices, a weak stock market and at least a temporary trade deficit caused by a steep bill for oil imports. Those concerns have evidently started to offset fears of the potentially inflationary effects of big inflows of foreign cash.
Chinese securities officials made a series of phone calls to top fund managers outside China late last week telling them of the relaxation of the capital restrictions, according to several money managers. But if the fund managers wanted to increase their requested allotments for investing in China, they were told they would have to answer almost immediately a sign of the governments haste to come up with a plan to reassure financial markets.
It literally was phone calls coming in at 4 and you had to give an answer by 5:30, said the chairman of a financial company heavily invested in China. He insisted on anonymity to avoid offending regulators.
WE HAVE A NEW "CHINA SYNDROME" PANIC HERE....
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Thanks for following up on that, Po. It plays into Tansy's "shocked, shocked!" theme, too!
Demeter
Mar 2012
#3
Greece’s international creditors say risk-prone program may lead to missing 2020 debt target
Demeter
Mar 2012
#7
IS THIS WHY? Fool’s gold behind Beijing loan guarantees Firm accused of ‘wealth management’ schemes
Demeter
Mar 2012
#32
indeed. -- now NC isn't Mich -- but i certainly had the heat cut on in the mornings
xchrom
Mar 2012
#18
"US Senators roll call votes correlate strongly with the opinions of their rich constituents"
bread_and_roses
Mar 2012
#40