China's central bank and the nation's financial institutions swung to a net sale of 41.2 billion yuan worth of foreign currency at the end of June after six months of net purchases. Analysts say the change may mark a net outflow of foreign capital, which in turn will place further stress on money markets and raise the possibility of a central bank rate cut.
Boutique investment firms in Asia are facing the challenge of fundamentally changing how they operate in a new, stiffer regulatory climate, observers say. Among other things, these firms are newly being asked to provide information about risks, controls and their decision-making. "That changes the profile of the type of person you need in an organization, and it increases your expenses," said Elspeth Todd, head of Asia-Pacific investment manager services at State Street.
China's first-half investment in fixed assets at 18 trillion yuan fell well below the targeted 22 trillion won, suggesting the nation will end up short of the full-year goal, said Bao Yujun, president of the China Private Enterprises Association. Private investors accounted for 11 trillion yuan of the first-half total but are not expected to boost investment for the remainder of the year, Bao said.
India's central bank clamped restrictions on the import of gold, requiring that 20% be made available for export and an additional 20% be retained by customs. The move is directed at India's ballooning current-account deficit, which has been worsened by the popularity of gold and high oil prices.
Temasek Holdings Chairman S. Dhanabalan will step down Aug. 1 after 17 years in the job. Dhanabalan, who will retain an advisory role, helped guide Temasek from an investment strategy centered on Singapore to a broader, international base.