Executives from HSBC Taiwan noted that recently they noticed the hot money from Hong Kong has been flowed in Taiwan, which is unusual, because the hot money was normally flow from Europe and the U.S.
Last month, Soros’ hedge-fund firm Soros Fund Management LLC opened its first Asian office in Hong Kong. The new operation will focus on investment in A-share, China concept and RMB related products, according to an earlier report from China Knowledge.
China in 2010, he told the BBC, controls “not only their own currency but actually the entire global currency system.”
The mechanism for exercising that control of international currencies is China’s local (national) control of its own currency, the yuan. By keeping the value of the yuan low, China has been able to flood the world with cheap exports. This undercuts US and other exporters. In consequence, the Chinese have been able to develop a huge trade surplus. The result internationally is, as Soros puts it, “a lopsided currency system.”
Soros also told Britain’s Financial Times dramatically that “whether it realizes it or not, China has emerged as a leader of the world. If it fails to live up to the responsibilities of leadership, the global currency system is liable to break down and take the global economy with it.”
var MarketGidDate = new Date();