ATI Newswire - Subscriber Only

RMB to start direct trading with the Euro

October 2, 2014

BEIJING - The People’s Bank of China has announced that the RMB will start direct trading with the Euro, a move which BBVA Bank says marks another significant milestone in internationalization of the RMB. Under the direct trading mechanism, RMB market makers will be able to directly settle their RMB/ Euro transactions. “Direct trading will lower the transaction costs of market makers and facilitate settlements relating to bilateral trade and investment,” BBVA says. www.bbvaresearch.com (ATI).

Malaysia waltzing on tightrope while biting fiscal bullet: ANZ

October 6, 2014

KUALA LUMPUR – Malaysia’s upcoming Budget, to be announced on October 10, will be significant given that it is the final one under the 10th Malaysia Plan, says ANZ Bank. “Amid looming normalisation of US fed fund rates, Malaysia has to continue to push ahead with fiscal reforms, especially given international capital’s aversion to its multi-year structural fiscal deficit,” it says. “The fickleness of carry trade flow amid a stronger dollar environment does not bode well for Malaysia, where the proportion of Government bonds under foreign ownership has climbed to more than 45%.”

Taiwan calls for ‘peaceful and cautious approach’ by China on Hong Kong protests

October 1, 2014

TAIPEI – Taiwan, which has been increasingly integrating its economy with that of China, in some cases in the face of increasing opposition from its own people, has gone public in support of Hong Kong demands for universal suffrage, calling on China to adopt a ‘peaceful and cautious approach in the current situation’.

New Compliance and Disclosure Requirements for China subsidiaries

September 28, 2014

HONG KONG - As part of China’s corporate registration reform, the State Administration for Industry and Commerce has issued a number of regulations mapping out new corporate disclosure and reporting requirements. In a Client Alert, lawyers Baker & McKenzie say the system is still evolving and the implementation of the changes may vary between cities, but many Chinese cities have indicated that they will implement the annual reporting system after October 1.

Non-performing loans up 28% in first half as China economy struggles

September 26, 2014

PARIS – Credit insurer Coface says non-performing loans (NPLs) in China have been rising, with the absolute amount of NPLs increasing by 28.7% on-year in the first half of 2014. “On the one hand, we see growth stabilising, on the other we see industry participants – particularly smaller companies - facing mounting pressure, from the cost of financing to the slowdown in demand growth.”

S&P revises India outlook to stable from negative; Ratings affirmed at 'BBB-/A-3'

September 27, 2014

SINGAPORE - Standard & Poor's has revised its outlook to stable from negative and affirmed its 'BBB-' long-term and 'A-3' short-term unsolicited sovereign credit ratings on India. Its our transfer and convertibility assessment is confirmed at 'BBB+'.

S&P says the outlook revision reflects its view that India's improved political setting offers a conducive environment for reforms, which could boost growth prospects and improve fiscal management.

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