Tag Archives | Yuan

G20 Reassurances Not Enough To Stop A Currency War

By John Richardson

PRESIDENTS XI Jinping and Barack Obama have made a commitment to avoid competitive currency devaluations at the G20 summit in Hangzhou.

The fact sheet released by the two presidents also contained this statement: [China will] “continue an …

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China’s Yuan: Making Sense Of All The Noise

By John Richardson

LAST year nearly $1trn was moved out of China as rich people lost confidence in the direction of the economy. Much of this was moved if not illegally, then through stretching the rules to the very edge …

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Yuan Devaluation: Next Phase Of The Great Unwinding….

…..China’s purified terephthalic exports could easily rise to 1m tonnes this year.

By John Richardson

THE next phase of the Great Unwinding, which we have been warning about since 2011, is now well underway. If you have taken note of …

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China’s Currency Appreciates By 26% In Four Years

By John Richardson

THE above chart further illustrates the dilemma confronting China, which, despite the often-discussed and wrongly interpreted growth in its domestic consumption, still depends on exports for about a quarter of its GDP.

Based on Bank of International …

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China After The Lunar New Year: Your Five-Point Guide

By John Richardson

HERE is a five-point guide to what will happen in China after the Lunar New Year is over (most of China will be only holiday from 18-24 February):…

The People’s Bank of China (PBOC) now seems almost

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China Exports: Whatever It Takes To Boost Volumes

By John Richardson

HERE is a reminder of some key facts about the Chinese economy:…

Investment, in the form of local real estate, infrastructure and industrial capacity accounts for around 50% of the country’s GDP.
China’s total investment levels are

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China To Follow In America’s Oil And Gas Footsteps

By John Richardson

DURING the economic Supercycle it all worked beautifully, as the above picture indicates.

China sold stuff to the West and then bought lots of US Treasuries from their earnings in order to keep US interest rates low. …

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China Credit Squeeze Further Weakens “Real Demand”

By John Richardson

DESPITE the 26% increase in China’s polyethylene (PE) imports in Q1 of this year over the same period in 2013, “real demand” continues to weaken – i.e. the resin bought by end-users to actually make things.

The …

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China Drives Down Yuan To Protect Jobs

By John Richardson

WE first warned in December 2011 that as China’s economic reforms accelerated, Yuan depreciation was a strong possibility.

 And then in May of last year, we picked up the theme again by again suggesting that as growth …

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China Hints At Yuan Depreciation

By John Richardson

LABOUR markets are tight in China and so on the surface there appears to be no great pressure on Beijing to attempt to export its way out of an unemployment crisis.

But what happens if, as we …

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