China turns to global 'real assets'
THE record US$94 billion fall in China's foreign exchange reserves in August - a larger amount than the official currency holdings of the UK or Canada - has commanded international headlines. However, amid signs that Beijing is accelerating its build-up of foreign "real assets" in quoted and non-quoted equities, infrastructure and real estate, the People's Bank of China's official reserves are becoming a less important guide to the overall value of China's wealth held abroad.
China sold some of its official dollar and euro holdings to support the renminbi during a volatile month for the China currency marked by a loosening of its peg to the US dollar - a long-trailed move to make the renminbi more responsive to market forces. This took China's official currency reserves to US$3.6 trillion, down US$400 billion from thei…
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Columns
‘Competition for talent’ a poor excuse to keep key executives’ pay under wraps
OCBC should put its properties into a Reit and distribute the trust’s units to shareholders
Why a stronger US dollar is dangerous
An overstimulated US economy is asking for trouble
Too many property agents? Cap commissions on home sales
Time to study broadening of private market access