A Positive View on China’s New Capital Controls
December 5, 2016
The Shenzhen- Hong Kong Stock Connect scheme launched today without much fanfare, overshadowed by Italy’s referendum and Trump’s anti-China Tweetstorm. Despite Trump’s weekend of China snubs—a phone call with Taiwan’s leader followed by Tweets complaining about China’s “currency manipulator” status—China has remained patient, unwilling to issue an similarly-scathing reaction to the President-elect’s provocations.
The weekend’s antics notwithstanding, China had a relatively calm week. The biggest news items included new restrictions on fraudulent capital outflows and a surge in one year interest swap rates.
Topics covered: Tax Policy, One Belt One Road, Interest Rate, Foreign Acquisition
The views expressed represent an assessment of market conditions at a specific point in time, are opinions only and should not be relied upon as investment advice regarding a particular investment or markets in general. Such information does not constitute a recommendation to buy or sell specific securities or investment vehicles.