According to a report by Korea JoongAng Daily, China appears to be preparing measures in case North Korea tests a nuclear device or performs another provocation, including possibly suspending oil to the regime, and adds that relations between Beijing and Pyongyang appear frostier than ever before.
Theoretical warnings about risks inherent in China's shadow banking system became all too for 150 customers of China's largest private bank, when Minsheng Banking Corp found itself involved in a 3 billion yuan (US$436 million) fraud case, after it emerged that a branch chief of the lender in Beijing allegedly issued false bank acceptance bills and later secured funds from individual investors to cover up the misdeed.
In discussing the key overnight news in an otherwise quiet session, JPM writes that "the most important headline was prob. the one concerning China loosening some currency outflow curbs" so focusing on that, Reuters, and SCMP before it, reports that after months of draconian and ever tightening capital control, China's central bank has relaxed some of the curbs on cross-border capital outflows it put in place just months ago to shore up the yuan currency.
In mid-January 2017, the Chinese central government released its 2016 economic performance data – and not surprisingly, it beat expectations (albeit by a slim margin)! China-watchers were expecting 2016 GDP growth to come in at 6.7%, but the country reported 6.8% instead.
On the face of it, that seems hardly a remarkable occurrence. However, there may be more than meets the eye here!
RARE…AND WELL DONE?
European stocks slide as traders returned from a 4-day Easter holidays, Asian equities likewise drop pressured by the ongoing rout in iron ore, while U.S. stock-index futures point to a lower open. British markets were roiled after U.K. Prime Minister Theresa May said she would seek an early election on June 8, in a move aimed at strengthening her hand going into Brexit talks; the FTSE 100 dropped 1.3%, on the news, hitting the lowest since Feb. 24 while 10Y Gilts dropped below 1% for the first time since October.