shlomo Posted May 2 Share Posted May 2 https://www.bloomberg.com/news/articles/2024-04-29/china-s-us-assets-becoming-hostages-divestment-advocate-says China needs to further reduce its Treasuries holdings, in part to lessen the potential leverage of Washington over its Asian rival, according to a paper published by a Chinese state think tank. The vast American assets that China’s authorities hold are “increasingly becoming hostages — hindering us from safeguarding our national sovereignty,” Di Dongsheng, vice-dean of Renmin University’s School of International Studies, wrote in a piece published by a China Institutes of Contemporary International Relations journal. Di also referenced President Xi Jinping’s emphasis on preserving “territorial integrity amid changes unseen in 100 years” in the global backdrop. Di pointed to the US freezing of Russian assets following Moscow’s full-blown invasion of Ukraine in 2022 as part of a long pattern of American actions that pose challenges for foreign investors. He cited US seizure of German properties during World War I, along with treatment of Japanese assets during World War II along with large-scale imprisonment of Japanese Americans as all proving “the US’s commitment to respect for property rights and human rights protection is merely a myth.” While US Treasuries today yield notably more than their Chinese counterparts, Di also argued that “yields on US government bonds have been depressed for a long time,” and that returns China gets are less than what American investors get in China. China’s holdings of Treasuries have been trending down for several years, hitting the lowest level since 2009 last October. It remains the second-largest foreign owner of Treasury securities, after Japan. Yuan’s Strength Many emerging markets boosted their holdings of Treasuries as a safeguard in case of global financial turbulence. China for years also bought up the securities as it purchased dollars to hold down its exchange rate — a tactic critics said was designed to protect the competitiveness of Chinese exports. Di argued that China now doesn’t need to keep massive foreign reserves in place, thanks to structural economic reforms at home. “Increased volatility in the exchange rate, or a moderate overvaluation of the yuan, will not have a major impact on China’s exports,” Di wrote. Low-end Chinese manufacturing has been replaced by mid-to-high-end products such as electric vehicles, batteries, drones and new energy products that are less sensitive to exchange rate levels, he said. Di also viewed large dollar reserves as unneccesary in the event of upward pressure from the US currency against China’s yuan. “China’s strong export competitiveness means that the exchange rate will automatically float up soon,” he wrote. Di’s comments received global attention in 2020, when Fox News at the time cited a speech of his that alleged Chinese influence over then-President-elect Joe Biden. His speech was later removed from China’s social media platforms. Quote Link to comment Share on other sites More sharing options...
Maghull Mike Posted May 2 Share Posted May 2 America V the rest of the World...........& GOLD Quote Link to comment Share on other sites More sharing options...
Social Justice League Posted May 2 Share Posted May 2 The current 'fiat' dollar is finished. It's getting embarrassing now. Quote Link to comment Share on other sites More sharing options...
Stewy Posted May 2 Share Posted May 2 17 minutes ago, Social Justice League said: The current 'fiat' dollar is finished. It's getting embarrassing now. Due to a propaganda paper published by a Chinese quango? 😆 Quote Link to comment Share on other sites More sharing options...
Maghull Mike Posted May 2 Share Posted May 2 https://www.telegraph.co.uk/business/2024/05/02/coutts-bank-pulls-2bn-out-of-london-stock-market/ Quote Link to comment Share on other sites More sharing options...
Maghull Mike Posted May 2 Share Posted May 2 1 hour ago, shlomo said: https://www.bloomberg.com/news/articles/2024-04-29/china-s-us-assets-becoming-hostages-divestment-advocate-says China needs to further reduce its Treasuries holdings, in part to lessen the potential leverage of Washington over its Asian rival, according to a paper published by a Chinese state think tank. The vast American assets that China’s authorities hold are “increasingly becoming hostages — hindering us from safeguarding our national sovereignty,” Di Dongsheng, vice-dean of Renmin University’s School of International Studies, wrote in a piece published by a China Institutes of Contemporary International Relations journal. Di also referenced President Xi Jinping’s emphasis on preserving “territorial integrity amid changes unseen in 100 years” in the global backdrop. Di pointed to the US freezing of Russian assets following Moscow’s full-blown invasion of Ukraine in 2022 as part of a long pattern of American actions that pose challenges for foreign investors. He cited US seizure of German properties during World War I, along with treatment of Japanese assets during World War II along with large-scale imprisonment of Japanese Americans as all proving “the US’s commitment to respect for property rights and human rights protection is merely a myth.” While US Treasuries today yield notably more than their Chinese counterparts, Di also argued that “yields on US government bonds have been depressed for a long time,” and that returns China gets are less than what American investors get in China. China’s holdings of Treasuries have been trending down for several years, hitting the lowest level since 2009 last October. It remains the second-largest foreign owner of Treasury securities, after Japan. Yuan’s Strength Many emerging markets boosted their holdings of Treasuries as a safeguard in case of global financial turbulence. China for years also bought up the securities as it purchased dollars to hold down its exchange rate — a tactic critics said was designed to protect the competitiveness of Chinese exports. Di argued that China now doesn’t need to keep massive foreign reserves in place, thanks to structural economic reforms at home. “Increased volatility in the exchange rate, or a moderate overvaluation of the yuan, will not have a major impact on China’s exports,” Di wrote. Low-end Chinese manufacturing has been replaced by mid-to-high-end products such as electric vehicles, batteries, drones and new energy products that are less sensitive to exchange rate levels, he said. Di also viewed large dollar reserves as unneccesary in the event of upward pressure from the US currency against China’s yuan. “China’s strong export competitiveness means that the exchange rate will automatically float up soon,” he wrote. Di’s comments received global attention in 2020, when Fox News at the time cited a speech of his that alleged Chinese influence over then-President-elect Joe Biden. His speech was later removed from China’s social media platforms. Coutts pulls £2bn out of London stock market Royal family’s bank plans to invest money abroad ‘to achieve best returns’ Michael Bow2 May 2024 • 4:05pm Related Topics Coutts, Natwest, Banks and Finance, The Royal Family The King’s bank is pulling nearly £2bn out of the London stock market in the latest hammer blow to the beleaguered exchange. Coutts, which banks the Royal family and operates an ATM in Buckingham Palace, has announced plans to move away from UK stocks and instead invest its money abroad. The changes will see the amount it invests in UK equities drop from 33pc of assets to just 2pc, meaning Coutts will sell £1.96bn of British stocks and plough the money into other regions. Coutts said the changes would help it “achieve the best returns for our clients in the most attractive markets”. The decision by one of Britain’s most iconic banks to shun the London Stock Exchange is yet another blow for the troubled market. London has been hit by a dearth of listings and a string of exits in recent months, as companies are taken over or opt to move to healthier exchanges in the US or Europe. The London Stock Exchange is currently shrinking at its fastest pace in history, Goldman Sachs said last week. Charles Hall, an analyst at stockbroker Peel Hunt, said Coutts’ decision should be a “call to arms” for the Government to shake-up policy. He said: “It may be fine for the fund but it’s pretty disastrous for the UK. What we are consistently doing is allowing capital that was invested in the UK to go and invest in overseas companies, which is one of the reasons why the valuations on our companies are depressed. “We as a country have a very free market laissez faire approach to our capital markets and this is now turning into a problem.” Mr Hall added that Coutts was not “unpatriotic” for pulling the funds. He said: “They’re not paid to be patriotic. People who’ve got their money in Coutts want to have some performance. “It’s just a reflection of what is happening and a call to arms for the Government.” Edison Group executive director Neil Shah said: “Coutts’ decision is more than just another blow for the City. It carries the potential to serve as the much-needed wake-up call for the Government to take action.” Chancellor Jeremy Hunt has made improving the health of London’s stock market a priority and announced reforms intended to boost the market as part of his Edinburgh Reforms in December 2022. However, the reforms have yet to stem the decline of the market. Coutts has around £10bn of funds under management. A spokesman said: “We retain significant investment in the UK and our investment strategy is to achieve the best returns for our clients in the most attractive markets. “We closely follow the performance of all markets in line with our individual client needs and our House Views are subject to constant review.” Coutts is owned by NatWest and as such is part owned by the taxpayer. The Government is NatWest’s largest shareholder with a 29.8pc stake. Coutts was at the centre of the debanking crisis at NatWest after the private bank decided to close the account of broadcaster and Reform UK president Nigel Farage. It subsequently emerged that Coutts staff had criticised Mr Farage’s political views before deciding to close his account. The incident triggered a major crisis at NatWest and the exit of chief executive Dame Alison Rose. Quote Link to comment Share on other sites More sharing options...
TenYearToGetMyMoneyBack Posted May 2 Share Posted May 2 Maybe the Chinese are reading reports like this Americans Getting Chillier Towards China (electronicsweekly.com) Quote Link to comment Share on other sites More sharing options...
Mikhail Liebenstein Posted May 2 Share Posted May 2 3 hours ago, Maghull Mike said: Coutts, which banks the Royal family and operates an ATM in Buckingham Palace, has announced plans to move away from UK stocks and instead invest its money abroad. Surely the Royals don't need an ATM, just ask Charlie to lay his head on the photocopier instead. Quote Link to comment Share on other sites More sharing options...
Locke Posted May 3 Share Posted May 3 14 hours ago, Maghull Mike said: We as a country have a very free market laissez faire approach to our capital markets and this is now turning into a problem. What is this supposed to mean? Quote Link to comment Share on other sites More sharing options...
Maghull Mike Posted May 3 Share Posted May 3 10 minutes ago, Locke said: What is this supposed to mean? WE let them use "Financial engineering" or FRAUD as it used to be known.... Mike Quote Link to comment Share on other sites More sharing options...
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