Big news from Davos, China will open the door of domestic foreign exchange market to the foreign central bank, which is another move following China’s central bank’s opening inter-bank bond market to three foreign institutions, Premier Li Keqiang expressed in a speech of Davos.

After the Federal Reserve guided to raise interest rates of the dollar, as well as China's central bank announced the yuan central parity adjustment and triggered the global currency turmoil, in the background, the Chinese government made further adjustments on the foreign exchange market.

I believe that the move needs to be discussed in four areas:

First, the introduced objects are the central banks of other countries. The in the foreign exchange market, the central banks in general, have no strong intention of speculation, and they are likely to hold RMB in the long term, and the move is completely different from opening to speculators, and the move won’t cause greater volatility in currency markets.

The second is to further promote the internationalization of RMB. In the past few years, the central bank reached agreements of currency exchange with other countries, and some countries have also established an offshore RMB trading center, but it’s far from the real reserve currency of the RMB, and this time central banks of other countries enters into foreign exchange market, which is indeed a start of internationalization of the RMB. 

Third, to help stabilize the currency. Under the background of US dollar interest rate raise expectations, Chinese government has taken initiatives to open RMB, which could slow the dollar outflow speed, make US dollar liquidity more stable, prevent the impact of the dollar outflow, and also reduce the central bank’s pressure on the exchange rate stabilization.

Fourth, to help drive down long-term domestic interest rates. The offshore dollar enters China, then will be converted into RMB, and will be used to buy long-term government bonds, which will help drive down Treasury rates, as well as undervalue RMB interest rates, in the long run, it can reduce business lending rates, and benefit Chinese real economy.

In addition to the above sense, RMB could take global circulation, and then grow into the world's main reserve currency.

From the analysis of financial markets, the internationalization of RMB can reduce the long-term interest rates and the cost of corporate loans, while RMB settlement can reduce the exchange costs, boost the real economy, and benefit companies, the stock market or therefore rises sharply. (www.chinainout.com)

Internationalization of RMB Speeds up, Central Bank Allows Foreign Central Banks to Enter China's Currency Market

达沃斯传来重磅消息，中国将向外国央行打开境内汇市大门了，这是继7月份央行下文对三类外资机构开放银行间债市后的又一举措，李克强总理在达沃斯论坛上发表演讲时做出表示的。

在美联储引导美元加息后，以及中国央行宣布调整人民币中间价并引发全球汇市动荡的背景下，中国政府再就汇市开放做进一步的调整，意味儿深长。

笔者认为，此举在四个方面需要讨论：

一是此次引入的是各国央行。央行进入汇市一般而言，投机性不强，长线持有人民币的可能性较大，与完全向投机者开放汇市不同，此举并不会引起汇市较大波动。

二是可以进一步推进人民币国际化。在过去几年，央行与各国达成了人民币与各国货币互换协议，有的国家还建立了离岸人民币交易中心，但是，离真正的把人民币纳入储备货币还有更远的路要走，而此次引入各国央行进入中国汇市，是真正迈开了人民币国际化的步子。

三是有助于稳定人民币汇率。在美元加息预期的当下，中国政府采取将人民币开放的举措，可以减缓美元外流速度，甚至因各国央行参与人民币买入而使得国内美元流动性变得更加稳定，防止了美元大幅外流造成的冲击，也减轻了央行维稳汇率的压力。

四是有助于压低国内长期利率。境外以美元进入我国后，会兑换成人民币，并买入长期国债，这有助于压低国债利率，同时压低人民币利率，从长远看，可以降低实体企业贷款利率，利多中国实体经济。

除上述意义外，人民币借此可以在全球流通，进而成长为全球主要储备货币。

从金融市场分析，由于人民币国际化后，直接的效果就是降低了长期利率，降低了企业贷款成本，同时，中国对外贸易由于使用人民币结算，降低了汇兑成本，对实体经济有着显著的提振作用，反映到公司业绩上，存在长期利多，股市或因此大幅上涨。（中国进出口网）

Big news from Davos, China will open the door of domestic foreign exchange market to the foreign central bank, which is another move following China’s central bank’s opening inter-bank bond market to three foreign institutions, Premier Li Keqiang expressed in a speech of Davos.

After the Federal Reserve guided to raise interest rates of the dollar, as well as China's central bank announced the yuan central parity adjustment and triggered the global currency turmoil, in the background, the Chinese government made further adjustments on the foreign exchange market.

I believe that the move needs to be discussed in four areas:

First, the introduced objects are the central banks of other countries. The in the foreign exchange market, the central banks in general, have no strong intention of speculation, and they are likely to hold RMB in the long term, and the move is completely different from opening to speculators, and the move won’t cause greater volatility in currency markets.

The second is to further promote the internationalization of RMB. In the past few years, the central bank reached agreements of currency exchange with other countries, and some countries have also established an offshore RMB trading center, but it’s far from the real reserve currency of the RMB, and this time central banks of other countries enters into foreign exchange market, which is indeed a start of internationalization of the RMB. 

Third, to help stabilize the currency. Under the background of US dollar interest rate raise expectations, Chinese government has taken initiatives to open RMB, which could slow the dollar outflow speed, make US dollar liquidity more stable, prevent the impact of the dollar outflow, and also reduce the central bank’s pressure on the exchange rate stabilization.

Fourth, to help drive down long-term domestic interest rates. The offshore dollar enters China, then will be converted into RMB, and will be used to buy long-term government bonds, which will help drive down Treasury rates, as well as undervalue RMB interest rates, in the long run, it can reduce business lending rates, and benefit Chinese real economy.

In addition to the above sense, RMB could take global circulation, and then grow into the world's main reserve currency.

From the analysis of financial markets, the internationalization of RMB can reduce the long-term interest rates and the cost of corporate loans, while RMB settlement can reduce the exchange costs, boost the real economy, and benefit companies, the stock market or therefore rises sharply. (www.chinainout.com)

Germany’s 7-month Seasonally Adjusted Import and Export Monthly Growth Rate Grows, Breaking Record in 1991

German 7-month exports and imports rose to a record, indicating that foreign demand remained strong and the German domestic demand was also good, although China's economy slows down.

German Federal Statistical Office (FSO) on Tuesday (September 8th) released data showing that 7-month exports monthly growth rate after seasonally adjustment increased by 2.4% to 103.4 billion euros; imports rose by 2.2% to 80.6 billion euros. Both breaks the compiled record in 1991.

German’s 7-month import and export data exceeded expectations, economists interviewed by Reuters had forecast 0.7% growth in exports, 0.5% growth in imports. However, economists warned that caution was necessary.

In these seven months, before seasonally adjustment, Germany’s exports to euro countries rose by 5.5%, exports to non-euro EU countries grew by 6.9%, exports to non-EU countries increased by 6.4%.

Bayerische Landesbank (BayernLB) economist Stefan Kipar said that Germany’s booming trade with the United States, Britain and the euro zone's lowers the negative factors of the weakness in emerging markets and China. He noted that foreign trade and domestic demand is likely to provide the impetus for economic growth in the third quarter.

German economic growth slowed early in 2015, but in the second quarter, the economy rebounded slightly to 0.4%, due to the foreign trade. Foreign trade is the traditional factor to promote economy, although in the past two years, private consumption has been the main driving force of economic growth in Germany. (www.chinainout.com)

How to Drink Wine Does Not Harm to Health? Japan Made Tracking Survey on 140,000 People for 10 Years

Drink wine? How much wine to drink? What frequency fits? Japan has made a large-scale follow-up survey on 140,420 Japanese in 12 regions since 1990.

The result showed that moderate alcohol consumption, liver rest day arrangements, balanced diet and adequate exercise is the secret of healthy drinking.

I. Alcohol consumption and the risk of circulatory disease
In a survey on 19,000 40 to 69 year-old male objects in 10 years, it shows that the risk of stroke increases in case that the weekly intake of pure alcohol is more than 300 grams, but the risk of ischemic heart disease lower.

II. Drinking and Cancer risk
Researchers has made a tracking survey on 35,000 40 to 59 year-old men for 9 to 12 years, and found that with alcohol consumption increasing cancer risk goes when the cancer risk of people having wine once a week is set to 1.

III. Moderate alcohol consumption and liver Day holiday is the key to reducing the risk of disease
How much wine intake is appropriate? The results shows that in terms of pure alcohol, for the Japanese right amount is 23 grams per day, that is to say, beer, 1 large bottle (633 ml), Japanese wine, 180 ml, in terms of wine, about 240 ml.
Set off liver rest day. a small cup one day might be a lot of people's fun, but to break down alcohol every day is undoubtedly a great burden to liver. 

IV. Vitamin B may reduce the risk of disease
It’s found that once people having drinking habits often take in vitamin B, esp. vitamin B6, the risk of people suffering from the disease is relatively low. Vitamin B6 is rich in the liver, tuna, bonito and other red fish.

V. People having exercise habits pay attention to moderate drinking
Through the tracking survey on 140,000 people, it’s found that the risk of people having regular exercise habits to suffer from disease is relatively low, and that people of regular exercise habits pay attention to moderate drinking.

China Revises down Its Estimate of 2014 Economic Growth to 7.3%

China’s statistics bureau has revised down its estimate of 2014 economic growth to 7.3 percent from 7.4 per cent, in a move set to revive concerns about the health of the country’seconomy.

In a statement posted on its website, the National Bureau of Statistics said China’s grossdomestic product last year was Rmb63.6tn ($10tn), down about Rmb32bn from its initialestimate in January. The bureau attributed the revision to a lower estimate for the country’sservices sector, while industrial and agricultural output were both revised upwards.

China’s central bank surprised global markets last month with a 1.9 per cent devaluation of therenminbi, spooking investors who thought the move was aimed at boosting flagging exportsand economic growth.

The revision takes the country’s economic performance a notch further below its officialgrowth target for last year, which was set at “around 7.5 per cent”. The 7.4 per cent figurewas already the slowest rate of expansion since 1990.

This year’s growth target is “around 7 per cent”, although Chinese officials have admitted thecountry may struggle to hit that figure.

The downgrade to China’s 2014 GDP came after G20 finance ministers tried to dispel fearsover the potential global fallout from a Chinese slowdown.

Wolfgang Schaeuble, German finance minister, said the G20 had agreed there was no reasonto fret over slower Chinese growth, while Pierre Moscovici, the EU Commissioner for economicaffairs, praised “the absolute determination of the [Chinese] authorities to sustain growth”.

Also at the G20 finance ministers’ meeting in Ankara, Zhou Xiaochuan, governor of the People’sBank of China, said China’s stock market had almost completed its “correction”.

(www.chinainout.com)

Summer Davos Forum Opens on September 9th in Dalian China

World Economic Forum 2015 Annual Meeting of the New Champions (also known as the Summer Davos Forum) will be held from September 9 to 11 in Dalian, China, there will be more than 1,700 guests from 90 countries participating.

Liang Linchong, the Deputy Director of China's National Development and Reform Commission, Department of International Cooperation on the 2nd said at a press conference held in Beijing, the Chinese government hopes to clarify through Davos forum, the Chinese economy as a whole is positive, China will adhere to the market-oriented reforms direction, and that China will pay more attention to rely on innovation to drive development; potential and prospects of China's economic development is very broad, which will bring more development opportunities to the world.

The Summer Davos Forum is themed by "depicts the new growth blueprint". Liang Linchong said the theme reflected the common concerns of the current international community to promote economic development. Guests will seek new growth points under the background of science and technology innovation, and make suggestions for the world economy balance and sustainable development.

Under this theme, some topics receives much concern, such as the impact of Chinese economy into the"new normal" to the world economy, how to carry out international productivity cooperation, the impact of RMB internationalization reform, Asian Infrastructure Investment Bank, Silk Road Fund and other Chinese-led global institutions to world order.

According to reports, it has been confirmed that the Deputy Prime Minister of Russia Yuri Trutnev, Mongolian Prime Minister Chimid Saihan Bielefeld, and the Prime Minister of Georgia Irakli Kariba Arsenishvili will attend.

Many Chinese officials and business people will attend the forum, including Alibaba Chairman of the Board Jack Ma, the director of the National Internet Information Office Lu Wei, and the National Development and Reform Commission Xu Shaoshi and so on.
(www.chinainout.com)

Putin to Visit China to Watch Parade and Sign Nearly 30 Agreements

Russian President Vladimir Putin's assistant Ushakov said the heads of China and Russia will attend the Chinese People's Anti-Japanese War and the World Anti-Fascist War Victory 70th anniversary ceremony, then hold a meeting.

Itar-Tass reported on August 31, Ushakov stressed that both sides would make it clear on the second world war result evaluation during the meeting, the two leaders of states attended ceremonies on May 9 in Russia and September 3 at Beijing, indicating that both sides are consistent on the evaluation of the outcome of World War II, "that is to say we are opposed to any form of distortion of history."

He said the two states’ leaders will discuss issues on bilateral relations, economy, the docking between the "Silk Road Economic Belt" and the Eurasian Economic unio, the interaction within the framework of SCO and BRICS organization, the G20 and APEC meetings. The two heads of state also witnessed the sign of nearly 30 agreements, such as the opening of the Consulate General of Russia in Harbin and other places, the creation of the Chinese Consulate General in Vladivostok and other places and so on.

"Russian Business Consulting Daily" reported on September 1, Russian President Vladimir Putin would visit China. This is not only symbolic, but also pragmatic, although the west line gas supply contract prepared for long may not be signed.

It’s reported that, in addition to participate in the celebration activities, Putin and his delegation will hold talks with the Chinese leaders. Ushakov said that talks with Chinese Premier Li Keqiang primarily involve economic and trade cooperation. Xi Jinping and Putin will hold talks for the third time this year. After talks the two sides will sign nearly 30 cooperation documents. (www.chinainout.com)