With the US and European crises behind them, South American trade figures are back on an upward slope. Local banks are paving the way for improved relations with China, and Chinese banks are increasing their presence in the region. Even the proximity of the US could have its benefits.
Latest articles from China
The UK and the US are taking very different regulatory stances, the former reverting to its characteristic light touch while the latter is taking a heavy-handed approach, but both regimes are driven by political considerations rather than market needs and are therefore at risk of damaging their respective banking systems.
The renminbi's slow move towards becoming a global currency has gathered momentum in the past 12 months, and with China's new premier signalling his intention to smoothen this process even further, the currency appears destined to achieve reserve status in the not-too-distant future.
Despite posting record profits and healthy loan books, China's banks continue to attract criticism from speculators, financial commentators and wary investors, who believe that the country's banking industry is a ticking time bomb.
The Chinese bond market must achieve greater diversity – of issuers and investors – if it is to facilitate the successful internationalisation of the renminbi, which requires the government to relax its rules on foreign participants, something it is already starting to do.
The extending of the QFII and the RQFII quotas in recent months demonstrate how the renminbi's liberalisation is developing at an impressive pace. However, authorities in the country appear keen to move things along even faster.
As Dubai has grown, so has its role in the global transaction services industry, with the emirate now serving as the nerve centre of all trade taking place across the Middle East and north Africa. And as Dubai sets out its stall to become the next renminbi hub, this role only looks set to grow.
The Securities and Exchange Commission's decision to investigate JPMorgan's hiring of so-called princelings only serves to add to the argument that regulators are being overzealous in their supervision of banks.
The unearthing of China's considerable off-balance-sheet liabilities casts a new light on the country's economic position, raising fears that its previously rapid development could stall.
Please select an area to explore
Most popular content
Most popular videos
- Interview with Laura Cha, chairman of financial services development council, Hong Kong SAR Government
- Ch 1. The cost of staying ahead: Can banks afford it? - Staying ahead of the game
- Investment Banking Awards 2013 highlights
- Arun Jain, chairman and CEO, Polaris Financial Technology
- Chapter 2 of 4: Digitising Banking; Applying the principle of Big Paper to PPI