ABOUT THE AUTHOR
Henry Hing Lee Chan:
By Henry Hing Lee Chan - 17 Nov 2016
Rodrigo Duterte’s silence on the US-Philippines mutual defence treaty ensures a certain degree of US influence on Philippine foreign policy. His posture on foreign policy independence to steer clear of big power rivalries and taking domestic issues as national priorities can meaningfully lower tensions in the South China Sea.
The most alarming sign of a Chinese property bubble is the accelerated price movement in recent months. A more than 30 percent year to year price rally across a number of big cities and the sharp increase in mortgage lending have heightened concern that the property bubble is being reinflated.
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.