China Macroeconomics & Academia

Christopher Balding

Macroeconomics

As the People’s Bank of China continues to allow the RMB to depreciate, it bears revisiting what specifically is driving this process and the continued nature of capital outflows.Foreign-related payment in RMB were up 17.6% from August to September, while receipts dropped by 7.8%. However, the payments are going primarily to Hong Kong, there has been little change in the non-China liquidity as seen by continued decline in offshore RMB deposits.Looking back, year-to-date foreign-related payments…

As the People’s Bank of China continues to allow the RMB to depreciate, it bears revisiting what specifically is driving this process and the continued nature of capital outflows.Foreign-related payment in RMB were up 17.6% from August to September, while receipts dropped by 7.8%. However, the payments are going primarily to Hong Kong, there has been little change in the non-China liquidity as seen by continued decline in offshore RMB deposits.Looking back, year-to-date foreign-related payments…

Haitong Securities Co Ltd (A) (600837 CH)

Chongqing Rural Commercial Bank (3618 HK)

Shanghai Pudong Development Bank Co. (600000 CH)

China International Capital Corporation (3908 HK)

China Financial Services Holdings (2980 HK)

China Merchants Securities Co Ltd (A) (600999 CH)

China Pacific Insurance (Group) Co., (601601 CH)

Flying Financial Service Holdings (8030 HK)

China Huirong Financial Holdings (1290 HK)

Changjiang Securities Company (000783 CH)

China Merchants Securities Co Ltd (H) (6099 HK)

Shanghai Stock Exchange Composite Index (SHCOMP INDEX)

Structural Drivers of RMB Depreciation