Posts tagged ‘CY Leung’

01/12/2015

Boost for China as it joins IMF elite – FT.com

The IMF on Monday gave a major vote of confidence to China and its reform efforts, giving the renminbi greater weighting than the yen or pound as it included the currency in its elite basket of reserve currencies.

Chinese one-hundred yuan banknotes are stacked for a photograph at the Korea Exchange Bank headquarters in Seoul, South Korea, on Thursday, Feb. 27, 2014. Photographer: SeongJoon Cho/Bloomberg

The vote by the board to make the renminbi the fifth currency in the basket used to value the IMF’s own de facto currency followed months of deliberation at the fund and years of lobbying by a Beijing eager for the recognition.

“The Rmb’s elevation to the club of elite global reserve currencies is a big step for China and a significant one for the international monetary system,” said Eswar Prasad, professor of economics at Cornell University and a former IMF China mission chief.

The renminbi will become the third biggest currency in the “special drawing rights” basket when it takes effect on October 1. The move is largely symbolic but Christine Lagarde, IMF managing director, called it a “milestone” in China’s economic reform “journey” and its integration into the global financial system.

Following the move the currency slipped 0.19 per cent to Rmb6.4374 against the dollar in offshore trading in Hong Kong.

The People’s Bank of China set its daily “fix” — the onshore rate around which the currency can trade 2 per cent either side — at Rmb6.3973 per dollar, its fourth consecutive slightly weaker rate.

Investors generally expect China to allow its currency to weaken gradually but few see much likelihood of a repeat of its 3 per cent August devaluation, which sent shockwaves through global markets.

Source: Boost for China as it joins IMF elite – FT.com

03/10/2014

Hong Kong protests: No exit | The Economist

IT IS a challenge unlike anything Chinese leaders have seen since Tiananmen Square in 1989; a city roiled by days of unauthorised protests led by students demanding democracy. On October 1st, the 65th anniversary of Communist rule in China, anti-government demonstrations in Hong Kong, which had begun nine days earlier with class boycotts, swelled to include well over 100,000 people. Protesters, conveniently armed with the umbrellas that have become their rallying symbol, endured downpours of rain to jeer the territory’s leader, Leung Chun-ying, as he presided over the raising of the national flag. A few raised their middle fingers towards it.

The “umbrella revolution”, as the movement has been dubbed, is the nightmare Communist Party leaders in Beijing have long feared from Hong Kong and the “one country, two systems” arrangement it has enjoyed since its handover from Britain in 1997. It is the first large-scale student-led protest for democracy to erupt in any Chinese city since 1989. And it presents unusual challenges. The authorities in Hong Kong are reined in by a legal system bequeathed by the British; they cannot, as officials commonly do in mainland China, handle unrest with a combination of astute bargaining, thuggish violence, ruthless treatment of ringleaders and tight controls over media and the internet. Xi Jinping, China’s president, is constrained by a desire to keep Hong Kong stable and prosperous: a botched response could badly damage one of the world’s wealthiest economies and China’s image.

But if the protests continue far beyond the public holiday on October 1st and 2nd, leaders in Beijing will doubtless become impatient for tougher action. On October 1st the party’s newspaper, the People’s Daily, called on Hong Kong residents to support “resolute” action by the police against the demonstrators, who it said would “reap what they have sown”. The party does not want Hong Kong’s protests to fan dissent elsewhere. Chinese censors on the mainland have been working hard to make sure they do not (see article). So too have China’s police, who have rounded up dozens of activists on the mainland for expressing sympathy with the protests. Some tour groups have reportedly been denied permits to go to Hong Kong on their usual shopping extravaganzas. Despite the party’s efforts, however, news of Hong Kong’s defiance is spreading in China.

The protesters’ main demand is that the people of Hong Kong be allowed to vote for any candidate of their choosing in elections for the post of chief executive in 2017 (the first in which citizens would have such a vote). Mr Xi has made clear he does not want any Western-style democracy within China’s borders. The current election plan, which China proposed on August 31st, calls for candidates to be screened by a committee stacked with party supporters.

Several protest movements have converged to challenge this. Until recently the best-known was Occupy Central with Love and Peace, which is modelled on Occupy Wall Street and named after an important business district in the heart of Hong Kong. But even Occupy Central’s leaders, who teach at local universities, wondered whether they could muster meaningful numbers. Then came the students, both from universities and schools, thousands of whom began boycotting classes on September 22nd. On the evening of September 26th the police inflamed their passions by arresting Joshua Wong, the 17-year-old leader of a movement called Scholarism, which two years ago led successful protests against an effort to introduce party-backed “patriotic” teaching in schools. Mr Wong was released on September 28th, but in the early hours of that day Benny Tai, one of the leaders of Occupy Central, announced that its protest, which had been scheduled for October 1st, would begin immediately.

via Hong Kong protests: No exit | The Economist.

02/10/2014

Hong Kong’s protests: A tough test for China’s leaders | The Economist

IT IS a most unusual sight on Chinese soil, and most unsettling for leaders in Beijing. On September 28th and 29th tens of thousands of demonstrators surrounded government offices and filled major thoroughfares around Hong Kong, braving rounds of tear gas from riot police to call for democracy and demand the resignation of Leung Chun-ying, the territory’s Beijing-backed chief executive. One image broadcast and shared around the world, of a lone protester holding his umbrella aloft in a cloud of tear gas (pictured above), has given the non-violent protests a poetic echo of “tank man” from the crackdown at Tiananmen Square in 1989.

Umbrella man

It also captures precisely what Communist Party leaders in Beijing fear from Hong Kong and its special status under the “one country, two systems” arrangement it has enjoyed since the territory’s handover from Britain in 1997. Not only are its people willing (and allowed by law) to challenge their government openly, but they also could become an inspiration for protests elsewhere in China. The spread of news and images of the protests has been blocked or heavily censored on the mainland, but as the protests carry on, the risk of contagion rises. In that sense this marks one of the most difficult tests of Chinese rule since Tiananmen.

Compounding the difficulty is the lack of a middle ground. The protesters’ main demand is that the people of Hong Kong be allowed to vote for any candidate of their choosing in elections for the post of chief executive in 2017 (the first in which citizens would have such a vote). President Xi Jinping has made clear he will have nothing resembling full Western democracy within China’s borders. The current election plan, put forward by the central government on August 31st, gives the central government an effective veto over nominees to ensure that Hong Kong remains firmly under its control.

Several protest movements have converged to challenge that control. Until recently the best-known movement had been Occupy Central with Love and Peace, which is modelled on Occupy Wall Street and named after an important business district at the heart of Hong Kong. But even Occupy’s leaders wondered whether they could muster meaningful numbers.

The biggest drivers of these protests have been university students and secondary school students, thousands of whom boycotted classes last week. On the evening of September 26th the leader of the secondary school students, 17-year-old Joshua Wong of Scholarism, was arrested—a move that, along with the use of pepper spray by police, was credited with swelling the popularity of the protests over the weekend (Mr Wong was released on Sunday). In the early hours of September 28th Benny Tai, one of the leaders of Occupy Central, announced that its protest, which had been scheduled for October 1st, China’s national day holiday, would begin immediately.

Mr Leung has shown no sign of bending. On the afternoon of September 28th, at a press conference held inside the government headquarters while thousands of protesters surrounded the building, Mr Leung repeated his endorsement of the election plan. It calls for chief executive candidates to be screened by a committee stacked with Communist Party supporters (he was elected by a similar committee in 2012, collecting 689 votes along with the derisive nickname “689”). Mr Leung acknowledged that the plan may not have been the “ideal” that some wanted, but he called it progress nonetheless. He said it had given Hong Kong citizens the “universal suffrage” they had been promised. Mr Leung said he welcomed “rational” dialogue but that the government would be “resolute” in dealing with the “unlawful” demonstrations. Asked whether the Chinese army would ever be used, Mr Leung expressed his confidence in the police. The tear gas canisters began flying shortly afterward, surprising protesters who exclaimed variations of “are you kidding?” and “shame on you”. Many donned goggles and unfurled umbrellas to protect themselves against the gas, while some raised their hands and yelled, “don’t shoot”. The protests did not become violent, but they grew and spread to other areas. The calls for Mr Leung’s resignation became louder.

via Hong Kong’s protests: A tough test for China’s leaders | The Economist.

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