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[B]Chinese Yuan sets another high against the US dollar[/B]
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[B]The yuan closed at 7.5355 to the dollar on the exchange-traded market, the lowest level since July 21 when the Chinese currency was revalued by 2.1 percent to 8.11 per dollar. One year onshore forwards were traded at 7.1892, anticipating that the yuan would be 5 percent stronger in one year?s time. China has been under pressure from countries such as the U.S. to allow its currency to gain faster. The PBOC has carried out a number of structural reforms in the foreign exchange market, including the gradual introduction of forward contracts and an independent market-maker system.[/B]
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[B]The Shanghai Composite index hit a new record on Thursday[/B]
Most Asian Stock markets closed higher on Thursday. The Shanghai Composite Index, which covers shares listed on the Shanghai Stock Exchange, closed up 1.56 percent at 5,393.66, a new record high. In South Korea the Kospi also closed 1.24 percent higher at 1,888,81. In Singapore, the Straits Times index advanced 0.5 percent to close at 3,466.06 and in Taiwan, the Taiex (Taiwan Stock Exchange Capitalization Weighted Stock Index) advanced1.16 percent to 9,017.08. In Hong Kong investors decided to take profits and the Hang Seng index was 0.08 percent lower than yesterday to close at 24,050.4.
[B]People?s Bank of China is[/B][B] fully aware of the potential risks of the crisis in the US subprime [/B]
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[B]According to the latest Monetary Policy report the the People?s Bank of China implemented a series of financial measures to strengthen macro-economic management and to maintain balanced monetary aggregates. “Sterilization instruments such as open market operations and reserve requirement policies were employed to withdraw liquidities from the release of RMB for foreign exchange purchases. In fact, Since the beginning of 2007, on six occasions the PBC increased the reserve requirement ratios of financial institutions by 3 percentage points and on three occasions it raised the benchmark interest rates on loans and deposits of financial institutions. Meanwhile, efforts were made to guide the optimization of the credit structure, steadily promote financial institutional reform, further enhance the elasticity of the RMB exchange rate, and speed up foreign exchange administration reform”.[/B]