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Henry Hing Lee Chan:
By Henry Hing Lee Chan - 11 Nov 2016
The success of Duterte’s visits to Beijing and Tokyo has initiated new dynamics in ASEAN’s position on the South China Sea issue. The Philippines will assume the rotating chairmanship of ASEAN next year and its success in lowering tensions on the South China Sea issue will likely become the ASEAN stand.
The Industrial and Commercial Bank of China is under police investigation over a fraud case reportedly involving RMB 3 billion worth of fake trade bills in the nation’s e-commercial draft system, highlighting the need to set up a more robust financial market framework.
The rise of corporate bond defaults and corporate downgrades has renewed calls for the establishment of a credit default swap market in China. The People’s Bank of China appears poised to give the hedging scheme the go-ahead in the near future.
Many people hold the view that economies of scale plus a booming economy are the two sole reasons behind China’ success in e-commerce. Physical infrastructure of telecommunications, information processing, and logistics are also factors.
The latest report from SWIFT shows that the share of the RMB in the global payment network dropped to 1.72 percent in June 2016, down 0.18 percent from the figure in May, and is the smallest share for the year to date.
MSCI Inc.’s decision on June 14, 2016 to not include China A-shares in the MSCI Emerging Market Index is seen by some analysts as a blow to the country’s efforts in raising its stock market profile and turning the RMB into an international currency.
Initial worries of clashes between the AIIB and existing Bretton Woods institutions such as the World Bank and the Asian Development Bank have subsided with increasing cooperation among these institutions and adoption of similar governance rules.
The June 23 Brexit referendum saw the UK vote to leave the European Union. The exit decision shocked the world with implications not only in the political and economic arenas of the UK and EU, but which also has far reaching repercussions beyond Europe.