RMB Comes of Age
December 31, 2015 | HSBCEstimated reading time: 2 minutes
In July, the People's Bank of China made it easier for other central banks, sovereign wealth funds and international financial institutions such as the World Bank to invest in China's inter-bank bond market. In August, the authorities gave market forces a greater role in how the central parity rate of the renminbi against the US dollar's daily trading band is determined. And in October, China increased the quota for how much South Korean institutional investors can invest through the Renminbi Qualified Foreign Institutional Investor (RQFII) scheme, while in November, China increased Singapore's RQFII quota and designated Malaysia as a new RQFII participant.
The SDR inclusion is likely to prompt more moves by China to progressively open its doors to two-way capital flows. A Shenzhen-Hong Kong equivalent of the Shanghai-Hong Kong Stock Connect, which allows investors from both sides direct access to each other's market, is in the works. So is a scheme that will start allowing retail investors in mainland China to invest overseas.
As China seeks to rebalance its economy towards more consumption, services and higher-value manufacturing, it needs a more open capital account: liberalisation will help support economic growth, improve the allocation of capital, and help bring down borrowing costs. The SDR inclusion is another step in this important and fundamental change.
Page 2 of 2Suggested Items
Infineon Advances on 300-millimeter GaN Manufacturing Roadmap as Leading Integrated Device Manufacturer (IDM)
07/10/2025 | InfineonAs the demand for gallium nitride (GaN) semiconductors continues to grow, Infineon Technologies AG is poised to capitalize on this trend and solidify its position as a leading Integrated Device Manufacturer (IDM) in the GaN market.
Webinar Review: A Global Trade and Economy in Flux
07/09/2025 | I-Connect007 Editorial TeamIn a July 8 webinar, Global Electronics Association Chief Economist Shawn DuBravac provided a comprehensive analysis of the evolving international trade environment, its implications for inflation, monetary policy, and labor dynamics, and a sober assessment of market valuations. In “Navigating a Shifting Landscape” DuBravac painted a picture of a global economy in flux, where shifting trade alliances and tariff structures are redrawing the supply chain map and influencing the broader economic landscape, while also conveying an overall bullish market outlook.
I-Connect007’s Editor’s Choice: Five Must-Reads for the Week
07/04/2025 | Marcy LaRont, I-Connect007For our industry, we have seen several bullish market announcements over the past few weeks, including one this week by IDC on the massive growth in the global server market. We’re also closely watching global trade and nearshoring. One good example of successful nearshoring is Rehm Thermal Systems, which celebrates its 10th anniversary in Mexico and the official opening of its new building in Guadalajara.
Weather RADAR Market Set to Hit Valuation of US$ 816.19 Million by 2033
07/04/2025 | PRNewswireThe global weather RADAR market was valued at US$ 158.43 million in 2024 and is projected to reach US$ 816.19 million by 2033, growing at a CAGR of 21.42% during the forecast period 2025–2033.
Philippines PC Market Falls 12.2% in Q1 2025 as Education Demand Slows
07/04/2025 | IDCAccording to the International Data Corporation (IDC) Worldwide Quarterly Personal Computing Devices Tracker, Q1 2025, the Philippines' traditional PC Market (desktops, notebooks, and workstations) dropped by 12.2% YoY in Q1 2025 to 617 thousand units.