Hong Kong

China is not ready to relax its rigid foreign exchange regime, despite a landmark stock market reform next month that could trigger an influx of overseas cash, economists said yesterday.

The imminent launch of a long-awaited scheme that allows qualified foreign institutional investors (QFII) to buy yuan-denominated A shares has prompted overseas foreign exchange markets to price in a more flexible and stronger yuan.

By Le-Min Lim

Oct. 5 (Bloomberg) -- Gloom prevailed at the second day of Asia's biggest art auction in Hong Kong since the U.S. credit crisis began with about two-thirds of the Chinese paintings and sculptures offered, many by masters, unsold.

Investors over-pay for guaranteed accumulators - RBS analysis claims that private banks are stacking trades heavily in their own favour when they sell guaranteed accumulators with low knock-outs. [Finance Asia]

"Eight mainland banks, including Industrial and Commercial Bank of China, have been punished for allowing loans to be channelled into property and stock markets, the banking regulator said yesterday." - SCMP, June 19

Back in 1996, when I was in the stockbroking business as a regional investment analyst, some of our people were wondering whether the Thai banking sector wasn't perhaps a little overstretched. Off I went to have a look along with a few others from our company.