• Ernie Diaz

SAFE Tease First

The State Administration of Foreign Exchange is doing a "feasibility study" on whether to allow citizens to use their foreign exchange quotas for foreign investments. Heretofore the quotas were restricted from direct overseas investment.

Those who keep a running tab on such studies know that even announcing such is basically putting the public on notice.

But before you go paying for Databases of mainland Jiang Q. Publics to pitch your mutual fund products, be advised: this kind of watershed new policy will apply to big players first.

"Considering the conventional wisdom of limiting capital outflow by any means necessary, this is a significant shift," says Jimmie Jeremejev. "However, this is going to be quite restricted, at first, and limited to massive, regulated investments that can be easily tracked and studied as use cases. In the near term, regular citizens will not be participating in streamlined overseas investments with their Forex quotas."

Nonetheless, western financial companies with products for large institutional investors have all the more reason for China-facing channels.

13 views0 comments

Recent Posts

See All

Let's tick off all China's bad news, before getting to the good news. Good news, that is, for investors looking to diversify their global portfolios. Not so good for Gordon Chang and other patient app

Like Hollywood, the western press is invested in narratives and emotional manipulation. Unlike Hollywood, that press has no compunction about skipping the third act of a story, if it doesn't fit that

Politics makes shortchanged bedfellows. As we've written before and will no doubt write again, the paradigm that China stocks = the VIEs of giant tech companies that make it to New York is keeping ave