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Monday, December 28, 2015 5:03:11 PM
China stocks have worst day in a month as IPO reform looms
China stocks tumbled more than 2 percent on Monday, their biggest loss in a month, as weak industrial profit data and a looming revamp of how companies will be listed, weighed on the market.
Investors are concerned about the impact of imminent changes to the system for initial public offerings (IPOs), which could see China moving from an approval-based system, toward a U.S.-style registration-system, potentially boosting share supply.
In a major step toward reform, China's top legislature on Sunday approved a proposal to reform the IPO system, authorising the government to kick-off the changes as early as March.
http://economictimes.indiatimes.com/markets/stocks/news/china-stocks-have-worst-day-in-a-month-as-ipo-reform-looms/articleshow/50351327.cms
China Faces 2016 Crisis
China chose to weaken its currency as speculation about a Federal Reserve interest-rate increase strengthened the U.S. dollar, a key piece of the country's currency peg. That had pushed up the value of the yuan and was crimping exports.
It's too early, meanwhile, to see the impact of the International Monetary Fund's approval this year of a plan for the tender to be included in a special basket of global reserve currencies; some analysts have predicted that the IMF's decision would prompt trillions of dollars of investment to flow into yuan-denominated assets.
According to Smith, there are questions on whether China even has its entire reserves available to defend the currency. For example, he says, the country's central bank has $1 trillion to $1.5 trillion of potential foreign-exchange liabilities, consisting of "inflows to debt and equity markets, carry trades and deposits and loans from overseas."
http://www.thestreet.com/story/13407258/1/china-faces-2016-crisis-as-bad-as-u-s-mortgage-meltdown.html
China stocks tumbled more than 2 percent on Monday, their biggest loss in a month, as weak industrial profit data and a looming revamp of how companies will be listed, weighed on the market.
Investors are concerned about the impact of imminent changes to the system for initial public offerings (IPOs), which could see China moving from an approval-based system, toward a U.S.-style registration-system, potentially boosting share supply.
In a major step toward reform, China's top legislature on Sunday approved a proposal to reform the IPO system, authorising the government to kick-off the changes as early as March.
http://economictimes.indiatimes.com/markets/stocks/news/china-stocks-have-worst-day-in-a-month-as-ipo-reform-looms/articleshow/50351327.cms
China Faces 2016 Crisis
China chose to weaken its currency as speculation about a Federal Reserve interest-rate increase strengthened the U.S. dollar, a key piece of the country's currency peg. That had pushed up the value of the yuan and was crimping exports.
It's too early, meanwhile, to see the impact of the International Monetary Fund's approval this year of a plan for the tender to be included in a special basket of global reserve currencies; some analysts have predicted that the IMF's decision would prompt trillions of dollars of investment to flow into yuan-denominated assets.
According to Smith, there are questions on whether China even has its entire reserves available to defend the currency. For example, he says, the country's central bank has $1 trillion to $1.5 trillion of potential foreign-exchange liabilities, consisting of "inflows to debt and equity markets, carry trades and deposits and loans from overseas."
http://www.thestreet.com/story/13407258/1/china-faces-2016-crisis-as-bad-as-u-s-mortgage-meltdown.html
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