Since October 2018, emerging markets have once again gained favor from international capital.
In this context, the MSCI expansion of A shares and the inclusion of A shares into the FTSE Em
erging Markets Index will likely happen in 2019, with foreign investment attracted by such major international o
pportunities. Latest data showed that in the fourth quarter of 2018, net inflow of direct investment by overseas financial ins
titutions soared to $2.14 billion, marking the highest level since the third quarter of 2015. Thanks to the overseas investment inflow, China’s capital ou
tflow pressure is expected to continue to be eased in 2019, thus reducing the restraint on its monetary policy.
Third, the yuan’s exchange rate continued to return to its normal valuation. In the long
run, the yuan’s rate reflects changes in China’s economic fundamentals, with two-way fluctuations surrounding its eq
uilibrium exchange rate. In the third quarter of 2018, the effective exchange rate of the yuan was greatly lower than the equilibrium rate. I
n the fourth quarter, the yuan’s rate rebounded slightly, indicating the effective exchange rate had started to r
eturn to its equilibrium level. Due to the still existing gap between the effective rate and equilibrium rate, there is room
for the yuan’s rate to return to its valuation, conducive to further buffering of the external exchange rate risk.
pinnacle. Since the end of the 1980s, he had made his voice heard constantly and had been labeled the “CPC veteran cadre + CPC critic.”
As a representative figure among veteran outspoken officials, he was hailed among Chinese liberals and Western public opin
ion. Among his propositions, the most famous was opposing the construction of the Three Gorges Dam.
Looking back on Li’s life, the prime of his life was embedded in the wave of the Chinese Revolu
tion and the country’s early development; he suffered a lot during that period of time.
In his later years, he participated in the creation of a special type of “veteran cadre + critic.” Stronger opinion was not at al
l unusual in those years, but the label of a retired official helped increase the gravity of Li’s voice and consolidated his stance.
Li’s later years were a success from another perspective as well. He had been enjoying a
generous pension and lavish benefits after retirement until he died in Beijing Hospital.
While benefiting from the privileges the state provided, he was also supported by China’s do
mestic anti-establishment forces and some Western powers. He was one of China’s least lonely old men and veteran cadres.
It should be noted that Li in his later years became a symbol of the diversificat
ion of Chinese society. Considering the meaning of this symbol, different conclusions can be drawn.
Supporters may hold that he had added a voice and more importantly a “scarce voice,” while
opponents would argue that he had become a tool for hostile and unfriendly forces to attack the Chinese system.
Li’s later years demonstrated a special way of boycotting China’s mainstream path. Such a role played by him may reflect various value judgments.
pressures, it is actually a need for China’s economic development, at the current stage, to further open up markets. Thus, the c
ountry’s accelerated opening-up is not only the response to the external risks, but also a key step in transforming pressures into new growth momentum.
So far, the openness of China’s manufacturing sector is relatively high, especially compared to the degree of ope
nness in the service industry, with foreign ownership limits and license restrictions set in such sectors like m
edical care, education, express delivery and others. Since the overall manufacturing sector is now basically opening up,
there is a high possibility that China will expand the opening of the service industry in the near future. Specifically, finance, medical care, education
and elderly care are all potential sectors that could see greater market access, as the current Chinese society is also in need of these services.
In other words, China has already got the basic conditions for further opening up of its service industry. With the country’s
per capita GDP exceeding $9,000, the proportion of residents’ basic living consumption has declined, while the co
nsumption demand for information, culture, medical care, education, elderly care, entertainment and other services has increased.
Some observers, however, have been concerned about the impact of increased opening-up on the domestic services industry. It is
undeniable that such an impact is inevitable, but it should be viewed as the pressure to stimulate the innovation and
China’s economic slowdown is a fact. Some foreign companies are said to be considering a withdrawal from the Chinese market, while others are making the choice to stay.
Nobody can say that all foreign companies can succeed amid the nation’s economic restructuring, but it’s very lik
ely that the ones who remain calm can emerge as winners in the market of more than 1.3 billion consumers.
China’s economic slowdown is making headlines around the world with signs of weakening growth agains
t the background of trade tensions. Several Western media outlets in recent weeks have published articles suggesting Ch
ina’s slowdown has started to weigh on some of the world’s biggest businesses, spreading alarm in the market.
The sales of a number of big companies are reportedly suffering as a result of China’s economic slowd
own. Those reports have led many to believe that those companies are losing confidence ab
out the Chinese economy. Some companies have plans to withdraw from China. However, investors may be misled by those reports. Official figures show t
hat inbound foreign investment in China reached an all-time high in 2018, reflecting overseas investors’ growing confidence in the Chinese market.
China is having a hard time amid its economic restructuring. In fairness, most of the world econo
my is suffering. Still, the Chinese economy has turned in a relatively good performance with GDP growth of more than 6 percent.