Archives of “August 28, 2019” day

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PBOC reportedly to issue its own cryptocurrency as early as November

  
Analysis, BITCOIN

Forbes reports, citing two sources familiar with the matter

China
  • People’s Bank of China is close to issuing its own cryptocurrency (12 August)
This has been rumoured for a while now but the latest report suggests that China is looking to issue its own cryptocurrency just in time for Singles’ Day (11 November) – which is the country’s biggest shopping day for online sales.
China is said to have accelerated their push for digital money after Facebook announced plans back in June to launch Libra within a year. The report adds that:

“The PBOC plans to distribute its cryptocurrency through at least seven institutions in the initial stage, including Chinese tech giants Alibaba and Tencent, China’s largest payments card issuer China UnionPay, and four Chinese state-owned banks.”

I reckon this could either be a massive game-changer in the industry or a massive flop. But given that this is China, I’m inclined to lean towards the former.
As such, watch this space as other central banks around the world may look to ride on the trend soon enough; should they have the capacity and infrastructure to do so.

Its official – Japan has removed South Korea as a preferential trade partner

  
  Analysis

We knew this was coming it had been flagged. All done now.

South Korea had been a Japan preferential trade partner (which meant simpler checks on exports)
  • But now Japanese manufacturers must apply for approval for each technology-related contract for South Korean export.
  • Next will be South Korea to similarly downgrade Tokyo’s trade status, which is to take effect next month.
—
A side show to the main trade war between China and US but an ugly one regardless

Satellite photos indicate North Korea may be making preparations to test a submarine-launched missile

  
Analysis, Politics

NBC with the report using satellite photos to indicate North Korea is building a ballistic missile submarine

  • and may be making preparations to test a submarine-launched missile
NBC citing
  • analysis of the commercial images by experts at a Washington-based think tank, Beyond Parallel, a research project funded by the Center for Strategic and International Studies (CSIS).
  • The photos show support vessels and a crane that, similar to past practice by the regime, could be deployed to tow a barge out to sea for a submarine-launched missile test, the analysts said in a written report
  • said it was unclear when a test might be carried out
NBC with the report using satellite photos to indicate North Korea is building a ballistic missile submarine

China exploring ways to loosen or remove car-purchase limits

  
Analysis, Economy
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China has begun to roll out a series of guidelines to encourage consumption, led by a boost for the auto market.

  • exploring ways to gradually loosen or remove car-purchase limits
  • to support new-energy vehicle purchases in some areas
  • incentives to build more gas stations in rural areas
  • removing investment barriers on fuel wholesale and storage businesses
The State Council made the announcement late Tuesday.
China has begun to roll out a series of guidelines to encourage consumption, led by a boost for the auto market.

China stock markets – MSCI raises weighting for China stocks in its indexes

  
  Analysis
  Tags

The reweighting from MSCI was announced earlier in August but it takes effect today

As a reminder:
  • MSCI has raised the inclusion factor of Chinese large-cap stocks from 10 to 15%
This is expected to bring in 22bn USD in foreign inflows. Which is timely given the sliding yuan I guess (PBOC might get a day off from worrying about capital outflow). Given the move was announced weeks agao there shouldn’t be too mcun spot impact now.
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