Business
People’s Bank of China Cuts Foreign Exchange Assets by a Third
The People’s Bank of China high-quality foreign exchange assets peaked in June 2014 and has fallen by a third as the bank sold high quality and bought lower quality assets.
People’s Bank of China (PBoC) balance sheet was tiny in 1980 with just $2.3 billion, or 40 percent of assets, in high-quality foreign exchange treasury debt. The other 60 percent was in low-quality “other assets,” typically non-performing domestic bank debt.
By June 2014, the PBOC had one of the best capitalized balance sheets on the planet with $3.993 trillion, or 84 percent of assets, in high quality foreign treasury debt.
But since mid-2014 the PBoC’s high quality foreign exchange holdings have plunged by almost $900 billion to $3.119 trillion, or 57 percentage assets. By June 2019, the low-quality “other assets” had increased by almost $250 billion, including $100 billion last month to nationalize the insolvent Baoshang Bank, the first state bailout since 1998.
PBoC assumed it would ease liquidity for the Interbank lending market by injecting $43.4 billion in direct credit guarantees to support small and rural Chinese banks on June 15.
Reuters reported that the PBoC tried to avoid being forced to flood even more liquidity into low-rated “other assets” when Li Chao, vice chairman of China Securities Regulatory Commission, met with seven of China’s top non-bank institutions on June 16 and directed them to continue making overnight Interbank loans to small rural banks.
But The Epoch Times reported that despite the efforts of the PBoC, Interbank borrowing overnight interest rate spiked from 1.84 percent to 13.44 percent on June 20, higher than the 8.22 percent in 2011 at the height of the Global Financial Crisis.
China’s financial crisis seemed to stabilize at the end of June, after the PBoC “urged” China’s largest state-owned banks to continue funding China’s top stock brokers through Interbank loans and security lending “repos.”
Meng Wei, a spokeswoman for the National Development and Reform Commission, stated that even though China was “facing a…
Business
BRICS: China Classifies Crypto as Property and Prohibits Business Ownership
China’s Shanghai court ruled cryptocurrencies are property, boosting optimism in the crypto industry while maintaining a ban on business transactions. This may signal a shift in future regulations.
China’s Ruling on Cryptocurrency
In a pivotal decision for the nation and its BRICS alliance, China has officially classified cryptocurrency as property while maintaining prohibitions against business transactions involving digital assets. A notable ruling from the Shanghai Songjiant People’s Court affirmed cryptocurrencies as property, sparking optimism within the crypto industry regarding future regulations.
Implications for the Crypto Industry
As cryptocurrencies gain significance globally, the Chinese ruling is viewed as a potential-positive shift amidst ongoing restrictions. While individuals can hold virtual currency, businesses remain barred from engaging in investment transactions or issuing tokens independently. This decision has generated anticipation for more accommodating regulations in the future.
Future Prospects for Cryptocurrency in China
Experts like Max Keiser believe this ruling indicates China’s growing acknowledgment of Bitcoin’s influence. As BRICS nations explore increased cryptocurrency utilization in trade, this legal shift could enhance market demand and lead to greater acceptance of cryptocurrencies as a legitimate asset class, setting the stage for potential developments in 2025.
Source : BRICS: China Rules Crypto as Property, Bars Business Holdings
Business
Wegovy: The Popular Weight-Loss Drug Now Available in China
Novo Nordisk launched Wegovy in China after approval, competing with Eli Lilly’s upcoming weight-loss drug. The treatment, costing 1,400 yuan, targets obesity but has potential side effects and isn’t covered by healthcare.
Wegovy Launch in China
Novo Nordisk recently launched its weight-loss drug, Wegovy, in China after obtaining approval from local health authorities in June. The introduction of Wegovy is expected to increase competition with Eli Lilly, which has also received approval for its weight-loss treatment, although it has not yet been released in China’s significant pharmaceutical market.
Cost and Accessibility
In China, a set of four Wegovy injections will be priced at 1,400 yuan (approximately $194), significantly lower than the drug’s U.S. price. However, patients will need to pay the full amount out of pocket since Wegovy is not yet covered by the national healthcare insurance plan.
Benefits and Side Effects
Research indicates that Wegovy can help users lose over 10% of their body weight. The drug contains semaglutide, which assists with appetite control and satiety. While Wegovy has been gaining traction globally, it may cause side effects like nausea. Concerns have emerged about its misuse among individuals who are not obese, prompting medical professionals to remain vigilant.
Source : Popular weight-loss drug Wegovy goes on sale in China
Business
China’s Golden Rooster Film Festival Kicks Off in Xiamen – Thailand Business News
The 2024 China Golden Rooster and Hundred Flowers Film Festival began in Xiamen on Nov 13, featuring awards, cultural projects worth 31.63 billion yuan, and fostering international film collaborations.
2024 China Golden Rooster and Hundred Flowers Film Festival Opens
The 2024 China Golden Rooster and Hundred Flowers Film Festival commenced in Xiamen, Fujian province, on November 13. This prestigious event showcases the top film awards in China and spans four days, concluding with the China Golden Rooster Awards ceremony on November 16.
The festival features various film exhibitions, including the Golden Rooster Mainland Film Section and the Golden Rooster International Film Section. These showcases aim to highlight the achievements of Chinese-language films and foster global cultural exchanges within the film industry.
On the festival’s opening day, a significant milestone was reached with the signing of 175 cultural and film projects, valued at 31.63 billion yuan ($4.36 billion). Additionally, the International Film and Television Copyright Service Platform was launched, furthering the globalization of Chinese film and television properties.
Source : China’s Golden Rooster film festival opens in Xiamen – Thailand Business News
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- Digital Taxation in China: Effects on Corporate Tax Risk Management and Compliance Strategies
- Farms to fame: How China’s rural influencers are redefining country life
- Wegovy: The Popular Weight-Loss Drug Now Available in China
- China Implements New Measures to Increase Foreign Investment in A-Share Market
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