Increased Interest In Buying “Portable China” By Domestic Bidders At Auctions Around The World Has Wider Implications
Economist Ha Jiming sees a fully internationalized yuan within the next decade
Today, a piece on the internationalization of the Chinese yuan by Ha Jiming, the chief economist at China International Capital, China’s largest investment bank, was published on Forbes.com. Ha believes that — within the next decade — the yuan will be a fully internationalized currency, and that the implications for this will be important and far-ranging:
Not long ago, China’s currency, the yuan, wasn’t traded beyond the country’s borders. Yet in the next 10 years, it will become fully internationalized and join the ranks of the world’s main reserve currencies, beside the dollar and the yen.
The global march of the yuan is an extension of China’s success since the launch of its economic reforms 30 years ago. The status of a currency is commensurate with the economic power of a country. The U.S. share of global GDP, for instance, increased from 10% at the turn of the 20th century to 20% after World War I, raising the dollar’s importance; the rise in Japan’s share of global GDP from 7% in 1970 to 16% in 1988 also elevated the yen’s role as a reserve currency.
[T]he internationalization of the yuan will benefit China in general by increasing the appeal of Chinese assets and pool of investment funds. This is similar to what happens when a company’s stock becomes a blue chip. International demand for yen assets increased significantly in the 1980s, as did global demand for U.S. assets at the turn of the century.
Posted in Art, Business, China, Chinese Art, Currency, Economics, Economy, Investment
Tagged China, Economics, exchange rates, forbes, foreign exchange, forex, ha jiming, Investment, renminbi, RMB, US dollar, yuan
China’s Monetary Policies Look To Favor Yuan, Gold At Dollar’s Expense: What Will This Mean For Art Collectors & Investors In “Portable China”?
Art Collectors and other holders of "Portable China" can benefit from the globalization of the yuan if they're in it for the medium- to long term
Today, Business Intelligence looks into China’s monetary policies, and how they are increasingly favoring alternate investment vehicles like gold while putting a dent in the US dollar. For investors looking to diversify their holdings into a number of areas to lower risk and exposure to market fluctuations, what will the simultaneous increase in asset diversification, global economic jitters, the ascendance of China and internationalization of its currency have on those who put their money into Chinese assets? The article does a fairly good job of illustrating the long-term effects these market forces will have on these investors as well as China itself:
In a series of recent policy moves and announcements through official channels, or increasingly through indirect ‘economic ambassador’ addressing conferences or talking to western reporters, China’s intentions and ambitions are becoming clearer.
Posted in Art, auction, Business, China, Chinese Art, Currency, Economics, Investment
Tagged Art, China, chinese, Chinese Art, chinese contemporary art, contemporary chinese art, Currency, dollar, gold, hedge, IMF, Investment, renminbi, RMB, SDR, Sino-US, US dollar, world bank, yuan