NYSE Liffe in China and Other China News

Collection of Chinese renminbi yuan banknotes....

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As head of business development for China, I'm responsible for relationships with Chinese regulators and exchanges as well as commercial customers in the region.

My major news this month is that for the first time a mainland Chinese broker, GF Futures, has become a trading member of our exchange. I expect a couple more to join very soon. (see FT article)

One of the main things I'll cover in my blogs is the Chinese financial community's response to world events. For instance, this week the spotlight was very much on Washington and the measures taken to avoid default. Beijing believes that the dollar had been saved today but its future remains as precarious as ever. They think that the credibility of the US sovereign debt has declined ever since the start the subprime crisis.

But because of the status of the US dollar in the international monetary system, every country and in particular China has no choice but recognise it as hard currency. With the crisis in Europe and the recent below to the Japanese economy, the case for investing in dollars remains strong. But they are very worried about the long term future of the US dollar.

China is currently holding around 2/3 of its $3.2trillion foreign reserve in US government bond. But it is diversifying away from the US dollar as much as it can, and this is a trend that will accelerate in the future.

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