China’s Evolving Toolkit to Manage Monetary Policy: QuickTake

China’s monetary policy is in flux, as the central bank tries to weed out risky lending while ensuring money keeps flowing to the economy. To achieve those sometimes competing goals, the People’s Bank of China is engaging a mix of liquidity tools and pricing signals, while keeping its historical benchmarks dormant. An added complication: managing the impact of the Federal … https://wapo.st/2Mu37hh

China Loves the MSCI Scramble, Hates Manipulators

The wait is almost over. But as MSCI Inc. opens the door to China’s stock markets, foreign fund managers need to be careful they’re not labeled manipulators by Beijing, again. On June 1, the firm will add more than 200 China A shares to the benchmark MSCI Emerging Markets Index. Inclusion could attract anywhere between $10 billion and $35 billion of inflows, by recent … https://wapo.st/2ILc07a

China’s Big Bang Looks Like a Collection of Squibs: Gadfly

The guests are starting to arrive, but the house isn’t quite ready for this party. That’s the way to view a slew of recent measures to open China’s $40 trillion financial industry to outsiders. This week, Beijing granted additional quotas for domestic funds to invest in overseas securities under the QDII plan, the first time it has done so in three years. At the same time, … https://wapo.st/2HAUsGK

Asian Banks’ Loan Strength Should Alarm Western Rivals: Gadfly

For international banks, Asia is becoming an increasingly uncomfortable place. Already facing pressure from regulators in their home countries to conserve capital and stay away from risk, they’re now having to cope with a newly sophisticated breed of Asian lender. Due to a boom in domestic and cross-border loans, bank advances in the region outside of Japan reached $26 trillion … https://wapo.st/2qbEOeg

China’s new Silk Road conundrum

An idea as big as China’s “Belt and Road” is bound to have contradictions. As Chinese President Xi Jinping’s signature foreign policy vision, it is massive in all dimensions, aiming to bind Beijing with the rest of the world through more than $1 trillion of new infrastructure, scores of trade agreements and countless other connections. But there is a fundamental tension … http://wapo.st/2GCuUIy