By the horns: Zhu gets a grip on China's economic levers
Article Abstract:
Chinese Vice-Premier Zhu Rongji has instituted policies to discourage property speculation, curb inflation and promote savings and investment in government-sponsored infrastructure projects. Chinese banks have raised interest rates, which spurred a rise in bank deposits. Furthermore, Zhu is taking measures to control the issuance of bonds on the local and provisional levels. Such bonds, which are offered with artificially high interest rates, compete with government projects for financing. Zhu is also looking to end the disparity between China's wealthy coastal regions and its poor interior.
Publication Name: Far Eastern Economic Review
Subject: Business, international
ISSN: 0014-7591
Year: 1993
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The squeeze is on: China has launched a credit crackdown
Article Abstract:
China is squelching the credit boom that resulted from the annual 30% growth in the money supply since 1990. This boom induced thousands of Chinese to go to Hongkong to find financial backing for projects. However, the 17% inflation rate associated with the credit boom and the growing money supply persuaded the government on May 15, 1993 to jack up interest rates. The new tight-money policy may bring conflict between the provinces and the Peking government and may curtail economic activity in Hongkong.
Publication Name: Far Eastern Economic Review
Subject: Business, international
ISSN: 0014-7591
Year: 1993
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Two-price China: renminbi's slump creates challenges for foreigners
Article Abstract:
China's currency, the renminbi, went from 8.14 to the US dollar to 10.17 after the government ended restrictions on swap markets on Jun 1, 1993. This represented a 25% drop in value and reinforced the difference between the swap rate and the official, government-set exchange rate, which most recently stood at 5.69 to the dollar. The renminbi's fall will further deter businessmen from heeding the official exchange rate and will complicate the government's anti-inflationary policies.
Publication Name: Far Eastern Economic Review
Subject: Business, international
ISSN: 0014-7591
Year: 1993
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