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Are we on the eve of a turn in the Great Game? | 79 comments (79 topical, editorial, 0 hidden)
Shanghai Free Trade Zone Gold Exchange (none / 0)
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Gold trading to open up to foreigners in Shanghai

Beijing has promised to make the yuan convertible under the capital account in the zone but has yet to give the go-ahead on this step to institutions and individuals based in the zone.

A liberalised capital account could let foreign investors trade yuan-denominated equities, financial futures and commodity futures - all of which are now off-limits to them. But financial regulators remain concerned over the prospect of a surge in hot money inflows prompted by a fully convertible yuan.

The Shanghai Futures Exchange set up a 5 billion yuan (HK$6.3 billion) subsidiary, Shanghai International Energy Exchange, in the free-trade zone in November last year. Yuan-denominated crude oil futures will be traded on the exchange.

Foreign investors will be allowed to participate in crude oil futures trading as the mainland strives to gain pricing power on the key energy product.



Amnesia and Gaza Genocide
by Oui on Sun Apr 27th, 2014 at 10:22:31 AM EST
[ Parent ]
Re: Shanghai Free Trade Zone Gold Exchange (4.00 / 2)
So far China has been pursuing a three track currency program. The first track is domestic and is strongly controlled by the government, but China is starting to allow a degree of private sector influence on valuations as a signal to public sector prices, that is the second track. The third track is Hong Kong, where currency and futures trading is at a premium to prices in China. China could well be moving most of the foreign trade into the public track, but, for now, still has the government to government agreements.
See Renminbi internationalisation and China's financial development by Robert McCauley of the Bank for International Settlements. This was one of the reading assignments in Perry Mehrling's Money and Banking course.

"It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Sun Apr 27th, 2014 at 10:56:29 AM EST
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Are we on the eve of a turn in the Great Game? | 79 comments (79 topical, 0 editorial, 0 hidden)
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