Category: China

China ’s foreign currency reserves surged to US $ 1 trillion , the most ever held by a single country. It is growing at US $ 30m an hour. Wow ! am I reading this news correctly or the media printed this figure by mistake ? My eyesight is still alright hopefully. Yes , it is US $ 30 millions per hour … can you imagine that ?

The growth has been driven by a record trade surplus that critics in the United States blame on an artificially undervalued yuan. The government’s policy of not allowing the yuan to strengthen to reflect demand for the currency keeps the nation’s export prices low , further fuelling the trade surplus. Holding a large foreign currency reserve is of strategic importance for China to cope with international challenges. China maintains the forex reserve mainly for the purpose of guarding against international financial risks , ensuring the balance of international payments and safeguard security of the national economy.

Some consider that a fast rise could also over-stimulate the economy. Will this trade surplus and excessive reserves …

There are lots of business opportunities and trading potential in China , the awakened giant. Hence I specially created a separate folder ” China ” in this blog. I hope to see the same convenience , capability and flexibility to trade China market online in the near future. Maybe , maybe not in my generation … anyway there are already great range of products and many trading vehicles or varieties to trade in the US Market.

China’s growth and transformation into a dynamic economy and its integration into globalistion have been the most dramatic economic developments of recent years. We witness a great deal of recent debate about China’s exchange rate regime. China maintains a de facto fixed exchange rate regime , with the yuan linked to the US dollar within a tight trading band. Is the yuan undervalued ? This is an ongoing debate and discussion.

I travelled to ShengZhen China couple of times for business trip recently. My feeling and observation tells me that it is a booooom town. China is progressing …