...Markets & Institutions Group Assignment Yuan Devaluation Group 2 Group Members Kouadio Dieudonne XPGDM-18 Rohit Khandelwal XPGDM-28 Shruti Tibrewal XPGDM-32 COUNTRY AT A GLANCE Population | 1.364 billion | 2014 | GDP | $10.35 trillion | 2014 | GDP growth | 7.3% | 2014 | Inflation | 2.0% | 2014 | CHINA Economic Overview The Chinese economy experienced astonishing growth in the last few decades that catapulted the country to become the world's second largest economy. In 1978—when China started the program of economic reforms—the country ranked ninth in nominal gross domestic product (GDP) with USD 214 billion; 35 years later it jumped up to second place with a nominal GDP of USD 9.2 trillion. Since the introduction of the economic reforms in 1978, China has become the world’s manufacturing hub, where the secondary sector (comprising industry and construction) represented the largest share of GDP. However, in recent years, China’s modernization propelled the tertiary sector and, in 2013, it became the largest category of GDP with a share of 46.1%, while the secondary sector still accounted for a sizeable 45.0% of the country’s total output. Meanwhile, the primary sector’s weight in GDP has shrunk dramatically since the country opened to the world. China weathered the global economic crisis better than most other countries. In November 2008, the State Council unveiled a CNY 4.0 trillion (USD 585 billion) stimulus package in an attempt to...
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...The Depreciation of the RMB against the USD By: Hasnaa Taih Course: ECN 450 Date: 28/03/2011 China has a high level of policy intervention in the depreciation of the Renminbi (RMB) or (CNY). The depreciation of the RMB against the United States of America’s Dollar (USD) puts the USA’s firms and factories at a massive competitive disadvantage (China Currency Overview, 2010). There are two economists’ viewpoints when it comes to the undervaluation or overvaluation of the RMB against the USD and against other world currencies. There are economists that argue that the RMB is overvalued against some world currencies beside the Euro and the USD (Yuan is Overvalued, not Undervalued: report, 2010). Other economists argue that the RMB is undervalued against the USD, and this would be the major focus of this research paper. The RMB’s depreciation allows China to unfairly gain trade advantages over other trading nations. Economists views varies on the level at which the RMB’s undervaluation affect other Chinese trading partners. But most economists agree that currency flexibility would be of great help to decrease global imbalances (China Currency Overview, 2010). This research paper will discuss the different component of the Chinese protectionism policy for its exchange rate, and its effects on other nations such as the USA. The focus will be in showing the advantages and disadvantage for the USA and China in the trading balance. Historical background of the RMB: ...
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...China’s Economy- Whilst performing a close analysis on the economic and manufacturing standpoint of China, what are the main factors that must be taken into consideration? Currency – China VS The Netherlands A very large part of expanding a business to another location, especially outside of the European Union, is analysing the currency and exchange rates of that country in comparison to your own country’s. As found on the Currency Encyclopedia; CX, the Chinese Yuan Renminbi is the currency of China. Their currency rankings show that the most popular China Yuan Renminbi exchange rate is the USD to CNY rate. The currency code for Yuan Renminbi is CNY, and the currency symbol is ¥. In comparison to the Netherlands, once again according to www.xe.com, 1 euro is equivalent to 6.81086 yuan. When acknowledging the comparisons over a year, this is the outcome: The Economics of the “China-Price” Manufacturers in China have the ability to significantly lower their prices compared to foreign competitors, they are able to produce a large range of items at a much lower price. Due to this, China has taken over 70% of the world’s market share for items such as DVDs, toys, more than 50% for bikes, camera, shoes and telephones, and more than one-third of air conditioners, colour televisions, computer monitors, luggage and microwave ovens. China has established dominant market positions in everything ranging from furniture, refridgerators, washing machines etc...
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...spend someone else‘s money? Can you spend more than you own? Can you spend your money twice? –4– Verifying the source of a transaction digital signatures –5– Calculating account balances –6– Double spending fraud –7– Transaction chain vs. block chain –8– Creation of the block chain –9– Creation of the block chain – 10 – How does solving a block work? – 11 – Random guessing until hash is below threshold – 12 – Back to double spending – 13 – Double spending attack on Bitcoin – 14 – What is mining? – 15 – Mining pools – 16 – Recap Decentralized system of ledgers Transactions known by all nodes Transaction chain vs. block chain Solving blocks to confirm transactions Avoid double spending by computing power Mining pools for steady income – 17 – Recap Can you spend someone else‘s money? Can you spend more than you own? Digital Signature Transaction history Can you spend your money twice? Block chain – 18 – About 2 years after the paper about bitcoin was published, the digital currency exceeded $1 M market cap. The Beginnings November 6, 2010 Market cap exceeds $1 million USD July 17, 2010 MtGox is established The MtGox Bitcoin currency exchange market is established by Jed McCaleb. October 31, 2008 The...
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...Topic: Pegging HKD to USD vs. pegging HKD to CNY Course: Course Code: Instructor: International Financial Management EF 5143 Dr. Du Du Student Name and SID: Li Xing, 53680125 Lin Lin, 53834131 Chen Shu, 53684900 Zhang Rui, 95651546 Abstract The dollar- linked exchange rate system in HK was put into operation in 1983 and was always regarded as the footstone of stabilizing HK economy since then. However, 30 years later, great changes both inside and outside have taken place in Hong Kong. Now, a series of economic and social problems associated emerge with the Hong Kong's present exchange rate arrangement- linking HKD to USD. Is the dollar-linked exchange rate system still suitable for HK? Will the Hong Kong monetary authority have other better choices? In order to resolve the above questions, our report was divided into four main parts to analyze and discuss this issue. First, we discussed the reasons for choosing dollar- linked and also the disadvantages of linking HKD to USD that we assessed both in theory and fact. Then, we focused on the potential benefits of HKD linked with CNY before we analyzed the disadvantages. Later, we talked about a larger issue – dollarization and compared HK with Switzerland and Singapore before we came to our conclusions that HK should give up existed linking exchange rate system and adopt managed floating arrangement. Keywords: Linked exchange rate system, Hong Kong dollar, United State dollar, Chinese Yuan, Dollarization 1 ...
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...Jollibee Foods Corporation Charles A. Rarick, Ph.D. Gideon Falk, Ph.D Casimir Barczyk, Ph.D. Purdue University Calumet CASE SYNOPSIS The Pilipino Company, Jollibee, is imitating McDonald’s in some ways but has its own twist on offering unique products that emphasize local spices and local taste preferences. This fast growing restaurant chain has benefited from the increased demand for fast food in East Asia and has developed a unique business strategy. This case examines Jollibee’s success and how the company is successfully competing with McDonald’s. With its rapid growth, the company is now ready to expand to the rest of the world. INTRODUCTION Jollibee Foods Corporation, known distinctively by its red and yellow bumble bee mascot, operates a number of concept restaurants in the Philippines and beyond. From its core business, a McDonald's-like restaurant, Jollibee has expanded into a pizza chain, fast food Chinese restaurants, bakeries, breakfast bars, and a tea house. The company competes well with multinationals in the Philippines, and has begun a large expansion into the international market, including China and the United States. Jollibee, the original flagship brand, together with its additional product concepts, dreams of becoming a global powerhouse in the restaurant industry. THE PHILIPPINES The Republic of the Philippines is a country in Southeast Asia consisting of over 7,000 islands. The Philippines was “discovered” by Ferdinand Magellan in...
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...Comparison of eBay.com and Alibaba.com Thomas Liquori o h T a m i L s o u q . i r e m Digitally signed by Thomas Liquori DN: cn=Thomas Liquori, email=thomasliquori@a ol.com, o=thomasliquori.me, l=New York, NY Date: 2010.09.05 16:57:16 -04'00' 12/16/2009 Professor Reddi: BUS451 By: Thomas Liquori, Danauda Benjamin, and Anca Barbu EBay.com Introduction ................................................................................................................................. 3 EBay.com Products and Services .................................................................................................................. 5 TABLE OF CONTENTS Comparison of eBay.com and Alibaba.com Ebay.com Financial analysis .......................................................................................................................... 6 Ebay.com Last Three Year Financial Graphs ................................................................................................. 7 EBay.com TOWS Matrix Analysis .................................................................................................................. 9 EBAY.com TOWS Matrix Graph ................................................................................................................... 13 Competitive Forces for ebay.com ............................................................................................................... 14 EBay.com Industry Rivalry...
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...China’s Economic Growth 1978-2025: What We Know Today about China’s Economic Growth Tomorrow Views of the future China vary widely. While some believe that the collapse of China is inevitable, others see the emergence of a new economic superpower that increasingly poses a threat to the U.S. This paper examines the economic growth prospects of China over the next two decades. Extrapolating past real GDP growth rates into the future, the size of the Chinese economy surpasses that of the U.S. in purchasing power terms around 2010. Such extrapolations can be supported by standard growth patterns identified in economic development and trade theories (structural change, catching up, and factor price equalization). They can also be supported by an explanation of China’s past GDP growth through growth of various labor variables, with a subsequent derivation of future GDP growth based on reliable information about future labor quantity and quality. China’s demographic changes and economic growth have a number of implications for China and the world. JEL codes: O1 (O10, O11), O4 (O40, O47), O53, J11, O3, I21 Keywords: economic growth, growth accounting, growth forecasts, development theories, human capital formation, education (all: China) Carsten A. Holz Social Science Division Hong Kong University of Science & Technology Clear Water Bay Kowloon Hong Kong E-mail: socholz@ust.hk Tel/Fax: +852 2719-8557 26 December 2006 (Incorporates minor revisions of the 3 July 2005 and 2 November...
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...University of Nottingham Ningbo China Business School Academic Year 2015/16 Autumn Semester INTERNATIONAL BUSINESS ENVIRONMENT Lianxi Zhou EBay: China and India External Business Macro Environment Entry Report Group 2 Hugo John MASON; ID: 6513963 Boon Long Tan; ID: 6512494 Sung Jun PARK; ID: 6508247 Yasong ZHAO; ID: 6511938 Word Count: 3000 Table of Contents Introduction 2 China 3 Political Environment 3 Political and Legal System 3 Five Year Plan 3 One Belt, One Road 4 Risk 4 Economic Environment 5 Market Size 5 Currency 5 FDI 6 Socio-Cultural Environment 8 Guanxi 8 Hofstede’s Model of National Culture 9 China Recommendation 11 India 12 Political Environment 12 Political and Legal System 12 Opportunity 13 Risk 13 Economic Environment 14 Market Size 14 Currency 14 FDI 15 Regional Trade Blocs 16 Risk 16 Socio-Cultural Environment 17 Socio-Demographic 17 Trust and Uncertainty Avoidance 17 Human Resources 18 India Recommendation 19 Reference 20 Appendix 25 Introduction In recent decades a global shift has arisen and revolutionized the way businesses operate as we move into a more integrated and interdependent global economy. Known as Globalization, the e-commerce industry has been the crux of such a radical metamorphoses of nations. National economies are no longer self-contained and independent. China, having one of the fastest growing e-commerce markets at 22.6% (iResearch, 2014) has...
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...INFOANALYTICA FINANCIAL, ECONOMIC RESEARCH AND INDUSTRY ANALYSIS SUMMER INTERNSHIP REPORT ANANDARUP GHOSHAL 2008 ICFAI BUSINESS SCHOOL, AHMEDABAD SUMMER INTERNSHIP PROJECT FINANCIAL, ECONOMIC RESEARCH AND INDUSTRY ANALYSIS IBS AHMEDABAD 2|Page SUMMER INTERNSHIP PROJECT REPORT PROJECT AREA: FINANCIAL AND ECONOMIC RESEARCH AND INDUSTRY ANALYSIS FACULTY GUIDE: PROF. AMIT SARASWAT COMPANY NAME: INFOANALYTICA COMPANY GUIDE: ULLAS UNNIKRISHAN MARAR IBS AHMEDABAD SUBMITTED BY: ANANDARUP GHOSHAL ENROLLMENT NO: 07BS0024 MOBILE NO: 9913815561 E-MAIL: anandarup99@yahoo.co.in 3|Page I am thankful towards my company INFOANALYTICA a division of the Agarwal management consultants for giving me this great opportunity to work into the company for the summer internship project. It was a very good learning experience for me. I am thankful to the CEO of the company Mr. Amit Gupta. My project guide Mr. Ullas Marar has helped me a lot whenever I needed. My regards to my college faculty guide Mr. Amit Saraswat for being extremely helpful during the project. For him this was working as well as a learning experience. During my project I have got help from many other faculties. I am very thankful to Dr. Rashid Saiyeed, Prof. Toby Mammen, Dr. Saji Kumar and Mr. Ravi Gor. I am thankful to our director Prof. Bala Bhaskaran for providing me this great opportunity of the learning. 4|Page Table of Contents INTRODUCTION: ....................
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...The Classical Chinese Art Fund The Classical Chinese Art Fund FR3208 Arts and Antiques Market: Coursework 2 The Classical Chinese Art Fund Content Page 1. The Classical Chinese Art Fund 1.1. What is the Classical Chinese Art Fund? 1.2. Investment Profile of the Fund 1.3. Rationale: The China Factor 1.4. Investment Approach and Strategies 1.4.1. Growth Strategies 1.4.2. Risk Management Strategies 2. Market Analysis 2.1. Art Segmentation 2.1.1. Chinese Calligraphy 2.1.2. Chinese Paintings 2.2. Major Players 2.3. Demand and Supply Analysis 3. Role of Public Institutions and Regulatory Policies 4. The External Competitive Environment 4.1. Correlation between Chosen Sector and other forms of Investment 4.1.1. General Outlook of the Art Fund 4.1.2. Comparative Analysis of the Fund and Other Art Investment Funds 5. Prospective Investment Portfolio of Art Works 6. Conclusion • Appendix The Classical Chinese Art Fund FR3208 Arts and Antiques Market: Coursework 3 The Classical Chinese Art Fund 1. The Classical Chinese Art Fund 1.1. What is the Classical Chinese Art Fund? The Classical Chinese Art Fund is an investment fund approach that capitalizes on the valuable asset class of Classical Chinese Art, specifically Chinese paintings and calligraphy art pieces. Chinese paintings and calligraphy art works are considered ...
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...A Brief History of the International Monetary System Kenneth N. Matziorinis 1. Introduction The international monetary system is the structure of financial payments, settlements, practices, institutions and relations that govern international trade and investment around the world. To understand the international monetary system, we can start by looking at how a domestic monetary system is structured. The Canadian financial system, for instance, is composed of a) a currency; b) a central bank which issues that currency; c) financial deposit-taking and lending institutions such as commercial banks and d) the Canadian Payments Association. The currency used in Canada is the Canadian dollar. It is the means of payment, store of value and unit of account for all transactions conducted within Canada. It is the currency in which all assets and liabilities are measured. As such, exchange rates are not an issue in our domestic transactions. The country’s central bank, is the Bank of Canada. Its role is to issue the currency of the land, the Canadian dollar, to manage the supply of money to ensure that there is neither too much of it that could cause inflation, nor too little that could cause recession and to oversee the financial system, acting as a lender of last resort when the need arises. Commercial banks and other non-bank financial institutions are the main players in the financial system. They engage in the process of financial intermediation, which is the taking of deposits...
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...CHINA’S PERCEIVED ONGOING BANKING CRISIS By Group B Giang Nguyen 1385858 Kiet Nguyen 1402739 Tu Nguyen 1390178 Ngoc Lo 1329692 Dung Dao 1390184 Hiep Ngo 1385862 Thanh Nguyen 1385991 Anh Nguyen 1390169 Khoi Pham1385967 An assignment for ECO 3353 - Spring term, Dr. Dominic Minadeo Troy University April 30, 2014 Abstract In 2013, China, the second largest economy in the world, has experienced a banking crisis that had severely consequences on China itself and several other countries. This resulted from a rapidly rise of short-term lending from the shadow banking system, which has been considered an unofficial lending market that operates outside the scope of regulations and has recently been plunged into crisis. This paper synthesizes the overall indexes and information about the ongoing banking crisis in China, which includes: recent China economic analysis, how the crisis impacts on domestic and global economy, comparing China’s banking system to several countries in the world and the forecast for China in the near future. How the crisis took off In today’s globalized world, no country is immune from the financial crisis, even the second largest economy of the world. An increase in risky and complicated financial practices in China can possibly drive the economy to a terrible crisis. The financial crisis resulted from a rapidly rise...
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...www.nitie.ac.in Volume 7 Issue 1 StreetAtNITIE In-Fin-NITIE ALSO INCLUDES: Bank Loan for Startups MSME Sector Development Global Turmoil and Indian Capital Market IN-FIN-NITIE Vol 7 Issue 1 IN-FIN-NITIE Vol 7 Issue 1 MESSAGE FROM THE CONVENOR Want to become an Investment Banker or a Financial Research Analyst Stop dreaming…Add the skill sets required to become one… IIQF is the pioneer of high-end finance education in India. It is an education initiative of top industry practitioners who have pioneered the most sophisticated financial technologies in India like Portfolio Risk Management Models and Systems and Algorithmic Trading Systems using High Performance Parallel Computing. “A mere 25% of graduates that India produces every year is actually employable. Even though India is poised to become the third largest economy in the world by 2050, out of all the graduates that pass out in an academic year, only 25% are suitable for getting inducted into the industry.” Jeffrey Fuller, Principal Advisor of Human Capital. There exists a huge gap between the skills that are required by the industry and what the Indian academic system produces. The objective of IIQF is to impart training to students in those skill-sets that are in demand in the industry and make them industry ready, or as we call them “The Street-Ready”. Certificate Program in Advanced Financial Modelling in Excel and VBA Certificate Program in Financial Modelling in Excel ...
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...1QFY2016 Result Update | Automobile July 25, 2015 Bajaj Auto NEUTRAL Performance Highlights CMP Target Price Y/E March (` cr) Net Sales Adj. EBITDA EBITDA Margin (%) Adj. net profit 1QFY16 5,613 1,140 20.3 1,015 1QFY15 5,252 925 17.6 740 % chg (yoy) 6.9 23.2 270 bp 37.1 4QFY15 4,739 904 19.1 666 % chg (qoq) 18.4 26.1 120 bp 52.4 Source: Company, Angel Research `2,497 - Investment Period - Stock Info Sector Automobile Market Cap (` cr) 72,268 Operating performance misses estimates; other income boosts profitability: Bajaj Auto (BJAUT)’s 1QFY2016 results have come in marginally below our estimates on the operating front. However, higher other income boosted profitability, leading the net profit to come in ahead of our estimates. Net Debt (` cr) (9,628) Revenues grew 7% yoy to `5,613cr, which is lower than our expectation of `6,058cr. Volumes grew 3% yoy, led by recovery in the motorcycle segment. Realisation/vehicle grew 4% yoy but declined by 9% on a sequential basis. Realisation/vehicle at `55,412 was lower than our estimate owing to higher proportion of entry level bikes in the sales mix. Operating margin, at 20.3%, was broadly in line with our expectation. However, given the lower revenues, the operating profit, at `1,140cr, missed our estimate of `1,193cr. Other income, at `437cr, almost doubled yoy, thus boosting profitability. Net Profit, at `1,015cr, beat our estimates...
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