China

ECB could hike rates, says Orphanides

The European Central Bank's rate-setting governing council will not rule out raising interest rates, Athanasios Orphanides, a member of the council and governor of the Central Bank of Cyprus, said on Thursday.

Currency flexibility needed for China's success

China will need exchange rate flexibility and, eventually, convertibility with open capital markets if it is to carry on succeeding as a large and diverse economy, says Maurice Obstfeld, an academic based at the University of California, Berkeley.

Renminbi revaluation would help dampen inflation

An appreciation of the renminbi against the greenback should lead to the Chinese authorities having more control over inflation, but would have little effect on the size of the United States trade deficit, says Marvin Goodfriend, an academic based at…

China SWF invests $5 billion in Morgan Stanley

The China Investment Corporation (CIC) became the latest sovereign wealth fund to capitalise on commercial banks' subprime losses on Wednesday, injecting $5 billion into Morgan Stanley, an American financial services group. The deal could lead to CIC…

EU and China agree measures on "severe" movements

A meeting between Jean-Claude Trichet, the president of the European Central Bank, and his Chinese counterpart, Zhou Xiaochuan, has resulted in the People's Bank of China saying it will co-operate with the EU to avoid "severe" fluctuations in exchange…

Zhou parries appreciation calls

Zhou Xiaochuan, the governor of the People's Bank of China, said that the central bank could widen the renminbi's trading range if deemed necessary.

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