Quota for Yuan scheme too small.doc

Quota for Yuan scheme too smallThe 20 billion yuan (HK$24.7 billion) earmarked for the initial renminbi qualified foreign institutional investor (RQFII) scheme is too little to satisfy investor demand, according to China Universal Asset Management, one of the first to be granted a quota. Beijing has so far approved a quota of 10.7 billion yuan for 10 mainland investment firms in Hong Kong under the scheme to repatriate yuan. China Universal was given the biggest share, 1.2 billion yuan, but said the scheme was too limited. RQFII will give Hong Kong investors the chance to directly invest in mainland shares and debt securities for the first time. Its a shame that not many can benefit from this. It is said 2012 would be a year for investors to be greedy as stock markets began to see signs of panic selling reminiscent of the 1970s, when stock markets were sold off in the wake of the oil crisis and recession fears. It would also be a good time to start investing in mainland bonds as monetary policies started to ease. One major obstacle to launching the RQFII scheme was the lack of consensus on the level of risk it might pose for mainland capital markets. But it is believed that now was the right time to launch it, because international trends would accelerate the rise of yuan as one of the most powerful currencies in the world. IBUonline is a foreign trade B2B platform, which aims to help SMEs to develop foreign trade; you can go to the homepage for more details. Logistic business boosted in e-business in 2012The Ministry of Transport will seek to expand the mainlands express courier sector by 150 per cent by 2015, turning the service into a 143 billion yuan (HK$175.2 billion) business. Under the governments latest five-year-plan, the ministry will nurture at least five large Chinese express courier companies, each with revenue of more than 1 billion yuan by 2015, in the hopes of positioning them against global leaders such as FedEx and UPS. The 12th Plan period is an important strategic opportunity for the rapid growth of our nations express courier industry. The use of express courier services is increasingly vital, with the explosive growth of e-commerce, the ministry said in a statement on its website. KPMG said a major factor in the recent domestic growth of logistics was e-commerce. This business is set to continue growing rapidly, it said in a report. Morgan Stanley forecasts Chinas e-commerce revenue will grow 75 per cent from 2010 to 2013. We are shocked by the rate at which Chinese shop online. Online business in China has grown a lot. They need efficient procurement or consumers will complain.By 2015, the ministry wants express courier services to cover 98 per cent of the mainlands municipalities and provincial capitals, with 95 per cent availability of 24-hour delivery services within the same city. IBUonline is a B2B for