Economics Essay on Standard Chartered nears Sale Prime Credit Consumer Unit

http://www.scmp.com/business/banking-finance/article/1599099/standard-chartered-nears-sale-primecredit-consumer-unit. This article is about the intended sale of Prime credit. Standard chartered bank is selling this subsidiary to Pepper Australia for an estimated value of between US$500 million to US$700 million. The article claims that standard chartered is selling Prime credit as a result of its new strategy that focuses global corporate market. Pepper and Chow Tai Fook of Hong Kong were the two main competitors after their bids were higher than those of other interested parties. The article further states the deals are subject to the approval of Hong Kong monetary authority. It is also noted that standard chartered bank is going through a rough patch, which has forced it to issue a loss warning. The institution is also intending to sell its Swiss private bank to cut losses.

http://www.scmp.com/business/money/markets-investing/article/1604235/yuan-start-direct-trading-euro-today. The article is about the start of the direct euro to Yuan exchanges in the mainland China, this is a move that is expected to lower transaction costs and make Yuan more popular in international trade. The people’s bank and HSBC had already received authorization to beginning this trading. It states that the euro shall be the sixth key currency to be exchanged directly in china; the others are US, Australian and New Zealand dollars, the British pound and the Japanese yen. It further says that transactions involving the US dollar totaled 12.2 trillion Yuan in the first six months of this year. The mainland trade with the European Union is stated to have grown by 12% every year to US$404 billion, which is more than that, traded with the US in the same period, which stands at US$354 billions. Germany and French companies are listed as the companies that are ahead among economies outside mainland, Taiwan and Hong Kong.

http://www.scmp.com/business/economy/article/1603520/beijing-eases-restrictions-foreign-firms-year-old-shanghai-free. The article states that Beijing is elating restrictions on foreign investments in many sectors, such as shipping sector. More than 20 sectors are to be opened up to foreign investors in the FTZ, which is being viewed as a test of how reforms in foreign investments will impact on the economy. The article states that for the first time, foreign companies will be allowed to own a controlling stake in shipping ventures owned jointly with local investors. This cap has been lifted from 49% to 51% to give foreigners a majority stake in the companies. Furthermore, foreigners will also be permitted to engage in salt wholesaling a sector that has been open to local investors only. However, it is stated that the limited size of the FTZ will restrict the number and size of foreign shops that can be set up there. The government expects to attract more investors, especially in the shipping industry because it is highly lucrative.

http://www.scmp.com/business/economy/article/1599035/financial-secretary-john-tsang-eyes-law-reform-attract-capital-hong. The article begins by saying that finance secretary John Tsang Chun-wah said Hong Kong was changing the laws to make the country gorgeous to foreign investors. The country is preparing laws to give more relaxed regulations for investment funds and attract the rich to the city. The country is trying to wade off competition from Singapore has grown as trust hub allowing wealthy people to set up trust funds for their families.

http://www.scmp.com/business/economy/article/1603492/guangdong-eyes-soe-reform. The article starts by reporting that Guangdong has set up a timetable meant to reform its state owned enterprises. The set target is 70% by 2017 though some analysts think it is too optimistic because some essential sectors are not spelt out in the reforms.