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Thai financial system not immune to weak political environment – S&P

February 21, 2014

SINGAPORE - A recent surge in cash withdrawals from a government-owned bank in Thailand suggests the currently weak political environment is starting to affect the country's financial system, but ratings agency Standard & Poor's sees the incident as politically motivated, rather than a sign of loss of confidence in any bank.

Why RMB appreciation has suddenly gone into reverse

February 21, 2014

HONG KONG - After a sustained period of appreciation, in which the RMB reached a record strength at 6.04 per USD on January 13, over the past week the currency has suddenly reversed course. The onshore spot rate has depreciated by almost 1% since mid-January, its largest decline since mid-2012, standing at 6.09 at present (one-year forward NDFs have also depreciated).

China flash PMI disappoints, but reflects New Year distortions

February 20, 2014

HONG KONG - China's flash HSBC manufacturing PMI declined in February to its lowest level since July, at 48.3 (consensus: 49.5; prior: 49.5). The outturn caused market sentiment to weaken (the Shanghai composite declined by 0.18%, along with declines of–-2.15% in Japan and 1.19% in Hong Kong) on persistent worries that growth may be slowing.

China’s Xi proposes equal consultations on cross-Strait political differences

February 19, 2014

BEIJING – China’s President, Xi Jinping in a meeting with the Kuomintang’s Honorary Chairman, Lien Chan, has saidhe is willing to hold cross-Strait consultations on political differences on an equal basis under the One-China principle. Lien said reconciliatory dialogues between the CPC and the Kuomintang in 2005 had led to peaceful development across the Strait, adding that both sides had embarked on the right course, which should not, and cannot, be reversed.

Thai, Bangladesh risks higher, but stable economies anchor sovereign ratings – S&P

February 19, 2014

SINGAPORE - Political uncertainties will stay elevated in Bangladesh and Thailand for some time and could hurt investor confidence and weaken economic activity, says Standard & Poor's, but the ratings agency expects the sovereign credit ratings on both two governments to remain unchanged over the next two years.

Bank of Japan expands lending facilities- but is it largely symbolic?

February 19, 2014

TOKYO - The Bank of Japan (BoJ) has left the pace of quantitative easing unchanged, as expected, at an annual expansion rate of ¥60-70 trillion in Japan’s monetary base – but at the same time has unexpectedly announced a doubling in size of two lending programmes, the “Fund-provisioning Measure to Stimulate Bank Lending” and the “Fund-provision Measure to Support Strengthening the Foundations for Economic Growth”. These programs were established in 2012 and 2010, respectively.

Shanghai to improve tax policies for foreign investment in FTZ

February 13, 2014

SHANGHAI - Fiscal and tax authorities are to study tax policies for overseas investment and offshore businesses to boost Shanghai’s new free trade zone. Song Yijia, Head of the Shanghai Finance Bureau, said the bureau’s prime task this year is to promote the FTZ by improving tax policies and opening up auditing services for foreign investment.

Top Chinese, Taiwan officials meet in Nanjing for Cross-Strait talks

February 12, 2014

NANJING - Taiwan's top official in charge of planning China policy says his meeting in China with his Chinese counterpart indicates that cross-Taiwan Strait relations have entered a new chapter. "It is a day worth noting," said Wang Yu-chi, Head of Taiwan's Mainland Affairs Council (MAC), who met on Tuesday with Zhang Zhijun, Head of China's Taiwan Affairs Office.

Number of bird flu cases in China reaches 200 since October

February 12, 2014

TAIPEI - The number of confirmed human cases of H7N9 bird flu has reached 200 since October, predominantly in China, according to Taiwan's Center for Disease Control (CDC). Deputy CDC Director-General Chou Jih-haw said that the H7N9 strain was first reported in late March 2013, and the second wave of cases began in October, with Hong Kong and Taiwan reported imported cases.

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