Reading Report on China Builds Financial Ties

中国建立经济联系

Reading Report on China Builds Financial Ties to Neighbors

Group 1, Monday 7,8

马海燕

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With President Obama and other world leaders arriving in Beijing for the 21-economy Asia-Pacific Economic Cooperation meeting, China unveiled a series of measures on Monday, Nov. 10, 2014 aimed at strengthening financial ties with neighboring nations and potentially weakening financial ties to the United States.

In that vein, China’s central bank unexpectedly pushed up the heavily controlled value of the country’s currency, the Renminbi on Monday morning in the sharpest single-day move in more than four years; the change makes goods from other countries more competitive in the Chinese markets. When the United States still exports many high-technology goods, China is the world’s dominant exporter overall of electronics and has much to gain from an elimination of tariffs as well. Still, the timing of Chinese currency move, just as President Obama arrived in Beijing, represents an olive branch of sorts to both the United States and Asian leaders. China has emerged as the world’s second-largest economy, after the United States. And a stronger renminbi would help the exports of other economies in Asia-Pacific region.

And Chinese securities regulators announced on the same day that they would begin allowing investors in Shanghai and Hong Kong to trade on each other’s stock markets on Nov. 17, a step that could strengthen both cities’ roles as financial centers in Asia. Stock market links offer another avenue capital to flow. The linkup called the Stock Connect will allow foreign investors to trade stocks listed on the Shanghai stock exchange directly for the first time. Mainland investors will be able to trade the share of companies listed in Hong Kong. The launch of the H.K.-Shanghai Connect program is a milestone in the evolution of China’s financial sector and the opening of its capital markets.

Reflection: China is becoming much stronger than before in economic and political areas. At the time, we should make more efforts to keep these achievements and make a progress on the present basis. Hearing the news above, I feel so excited and expect a better future.