Tag

Capital Controls

All articles tagged with #capital controls

markets6 hours ago•5 min saved

Crypto Perps Bring Chinese AI Stocks to Global Traders Ahead of IPO

Cryptocurrency exchanges have launched perpetual futures tied to Chinese AI stocks, notably CXMT, enabling foreign and crypto traders to gain exposure to pre-IPO and listed Chinese equities despite Beijing’s capital controls. Platforms such as tradeXYZ and Gate.com offer perps that track stock prices (often with leverage), blurring the line between crypto markets and traditional finance. CXMT’s Shanghai listing is targeting around $10bn, while regulators monitor how these instruments are classified and used, amid debates over hedging, access, and the evolving role of crypto-based equity bets.

via Financial Times|

#capital-controls #chinese-equities #cryptocurrencies

business2 months ago•36 min saved

Beijing Tightens Grip on Overseas Stock Trading Amid Capital Outflow Crackdown

China is cracking down on unauthorized overseas stock trading to curb capital outflows, targeting offshore brokers and unapproved channels after an estimated $1 trillion likely left the country last year, and steering mainland investors toward approved routes like Stock Connect and mutual funds—potentially reshaping how foreigners access Chinese and global markets.

via Bloomberg.com|

#business #capital-controls #china

economy5 months ago•3 min saved

Beijing bets on RMB ascent as dollar dominance endures

China aims to challenge the dollar’s supremacy, but turning that ambition into reality would require major structural changes—relaxing capital controls and building the financial infrastructure—steps Beijing has begun through cross-border banking and RMB-use in trade. Yet the dollar’s global role remains powerful due to vast U.S. Treasury issuance, market depth, and established payment networks, and limited high-quality assets outside the U.S. means the renminbi’s share in reserves is likely to rise only modestly, restrained by China’s capital controls and weaker institutions.

via Axios|

#capital-controls #cross-border-banking #dollar-dominance

politicseconomy2 years ago•3 min saved

"Argentina's Election: Milei's Rise and Brazil's Concerns"

As Argentina prepares for a crucial presidential election, the country's economy is in dire straits. With inflation at 138%, dwindling foreign currency reserves, and a looming recession, voters are angry about the harsh cost-of-living crisis. The main challenge for the next president will be to revive the stagnant economy and lower inflation. The peso is shackled by capital controls, leading to multiple exchange rates and a demand for dollars through parallel channels. Two of the top candidates have pledged to undo capital controls, which could lead to a sharp devaluation of the official exchange rate. The central bank's reserves are near their lowest level since 2016, posing a threat to debt repayment and import coverage. The economy is projected to shrink by 2.8% this year, exacerbating poverty levels. However, Argentina's rich resources in grains, shale gas, and lithium offer a potential boost if properly utilized.

via Yahoo News|

#argentina #capital-controls #economy

economy2 years ago•2 min saved

The Risks of Putin's Currency Rescue Plan

Russia has decided not to implement partial capital controls to stem the falling ruble, following speculation that the extreme measure was being considered. The government and exporters had discussed the move amid a slump in the currency, but it was decided not to implement the measure after talks between President Putin and the head of the Central Bank. The Bank of Russia recently announced an emergency interest rate hike to address the weakening ruble. If the interest rate increase does not work and the ruble continues to weaken, the government may impose capital controls as a last resort.

via Newsweek|

#capital-controls #currency #economy

finance3 years ago•5 min saved

China's reluctance to fully de-dollarize and embrace the yuan as a reserve currency.

China may not be fully supportive of making the yuan the reserve currency of choice, as Beijing is unwilling to open its capital accounts or to run a deficit. China is likely to pursue its sphere of currency influence among countries it trades with actively, such as Asia, breaking up US dollar dominance in parts of the world instead. The US dollar's position and clout as a reserve currency comes at a cost, a current account deficit for America, which China cannot afford to run.

via Business Insider|

#capital-controls #chinese-yuan #current-account-deficit

finance3 years ago•5 min saved

China hesitant to fully abandon USD in de-dollarization efforts

China is unlikely to push for the yuan to become the dominant global reserve currency due to its unwillingness to liberalize its currency and allow money to move freely in and out of its economy, its inability to run a persistent deficit like the US, and the geopolitical risks it faces. Instead, Beijing is likely to focus on breaking up US dollar dominance in parts of the world and pursuing its sphere of currency influence among countries it trades with actively.

via Markets Insider|

#capital-controls #chinese-yuan #de-dollarization