Tag Archives: Germany

Rise of China benefits German export : EU think-tank

BRUSSELS, Aug. 11 (Xinhua) — The emergence of China is one of the leading contributors for the superb export performance of Germany in the 2000s compared to other European countries, a recent report by the Brussels-based think tank Bruegel said.

downloadimages (1)Germany is Europe’s export superstars, with an increase of 154 percent in exports between 2000 and 2013 compared to 127 percent in Spain, 98 percent in Britain, 79 percent in France and 72 percent in Italy, according to the report.

In addition, Germany is seen as a leading role model of successful adjustment from the “sick man of Europe” in the 2000s to an economic powerhouse today, because of a quick rebound in export growth after the financial crisis in 2009.

According to the European Union (EU) trade monitors, Germany contributes one third of the total trade volume between China and Europe. In the five years after the financial crisis, German exports to China almost doubled, a stronger increase than in any other European country.

To explain Germany’s exceptional export performance relative to other European countries, the Bruegel economists found that Germany has benefited more from the opening up of China compared to other European countries.

First, China has become an important sourcing region lowering the production costs of European exporters, the report said.

According to the indicators of the sourcing pattern of European exporters, the biggest gainers from sourcing in China were Britain and Austria. UK exporters, who offshored to China, almost doubled their export market share to the world, while Austria’s exporters increased their export market share by 70 percent compared to exporters which did not offshore to China.

Germany, as the largest European importer of Chinese goods, its imports accounted for 21 percent of all the 28 members of EU.

However, for the export market share of German exporters, sourcing from China was only marginally important. The most important benefit comes from the rapid modernization of China.

The modernization of China exhibited a growing demand for German products with its comparative advantage in machinery, transport equipment and other manufactured goods, the report said.

China has favored particularly Germany’s exports, the economists said, as Germany is the world’s top exporter of cars, vehicle parts, machinery, and engine parts.

Meanwhile, German products has won a global reputation on quality. About 40 percent of German exporters offer top quality goods relative to the market average, the report said.

The most essential reason for Germany’s exceptional export performance is that German export business model builds on quality.

“The focus on quality may explain why export growth in Germany rebounded quickly after 2009 in spite of rapid rising nominal wages,” the report said.

The economists said high quality comes from the effective management. German exports business operate with a decentralized and less hierarchical organization which empowers workers at lower levels of the firm hierarchy.

“Germany is a world champion in exporting because it is a world champion in organizing,” the report noted. Enditem

China Focus: Chinese capital market accelerates deploying offshore RMB business

China Focus: Chinese capital market accelerates deploying offshore RMB business

 

BEIJING, May 27 (Greenpost) — Shanghai Stock Exchange (SSE), China Financial Futures Exchange (CFFEX) and Deutsche Bourse Group signed a strategic agreement on Wednesday to jointly initiate an offshore RMB financial instrument trading platform in Frankfurt, Germany, SSE said in a statement Wednesday.

Prior to this, the People’s Bank of China (PBOC), the central bank, just expanded its pilot of RMB qualified foreign institutional investors (RQFII) to Chile on Monday, granting it a quota of 50 billion yuan (8 billion U.S. dollars).

Further more, officials from China’s securities regulator also disclosed that China will officially launch the Shenzhen-Hong Kong stock connect program in the second half of this year.

All signs show that China’s domestic capital market is speeding up deploying the offshore RMB business.

According to the strategic cooperation agreement of the three parties, they will incorporate a joint venture in Germany as the operator for the platform, said the statement.

The SSE, CFFEX and Deutsche Bourse will hold a stake of 40 percent, 20 percent and 40 percent in the new company, respectively.

The main functions of the company are to make R&D for offshore RMB-denominated securities and derivatives products and provide trading spot for these products, it said.

The new company is expected to start operation in the fourth quarter of 2015.

Dr. Gui Minjie, president of the SSE, expressed that the establishment of the platform will help promote the two-way opening up of China’s capital market, enrich investment tools for offshore RMB markets, and promote the RMB internationalization.

As a matter of fact, this is not the first time for China’s domestic capital market to cast its eye on massive offshore RMB markets.

In early 2012, a number of RQFII funds made their debut in Hong Kong and offered a back-flow channel for offshore RMB there, which marked the start of RQFII program.

The RQFII program keeps expanding, having lured 13 countries and regions to pilot the business after Chile’s entrance, with investment quota topping one trillion yuan.

On November 17, the Shanghai-Hong Kong stock connect program was officially kicked off, and over half of the 300-billion-yuan quota for the program has been used.

The launch of similar program in Shenzhen means the RMB will have a smoother investment and backflow channel.

Notably, the size of offshore RMB posted about a ten percent drop from a year earlier in the first quarter of this year due to the strong performance of the US dollar, which will not last long in the view of experts.

A report by the Deutsche Bank predicts the size of offshore RMB deposits will rebound as from April, will reach 3.25 trillion yuan by the end of this year, up 30 percent year on year.

Some scholars hold that RMB internationalization has become a key strategy for the opening up of China’s economy and financial industry.

Besides accumulating offshore RMB pool via trade and investment, desirable investment products and places are also needed for offshore RMB.

Therefore, China domestic capital’s deployment of offshore RMB markets will help further improve RMB’s international position. Enditem

Source Xinhua

Editor   Xuefei Chen Axelsson

China, Germany exchanges to co-launch offshore yuan platform before year-end

China, Germany exchanges to co-launch offshore yuan platform before year-end

 

Stockholm, June 4 (Greenpost) — Chinese and German exchanges are to jointly launch an offshore yuan platform to trade financial instruments in Frankfurt before the end of this year, a source told Xinhua on Monday.

The Shanghai Stock Exchange and the China Financial Futures Exchange had conducted intensive talks with the Deutsche Boerse Group on plans for cooperation over the last week.

According to a source attended the meetings, the three exchanges had reached a consensus to jointly establish a trading platform that offers Chinese investors direct access to German financial markets.

Media reports said last Friday that the Shanghai Stock Exchange and the Deutsche Boerse had agreed to build cross-listing arrangements for companies from both countries. The source denied these reports, saying they were highly exaggerated.

The source added that the cooperation deal among the three exchanges was a detailed follow up to the decisions that top leaders from the two countries had reached during the first China-Germany high-level financial dialogue held in Berlin in mid-March. Enditem

Source Xinhua

Editor  chenxuefei7@hotmail.com

German rail giant mulls buying trains from China: report

German rail giant mulls buying trains from China: report

 

Stockholm, June 4 (Greenpost) — Germany’s national railway operator, Deutsche Bahn, said Tuesday that it was considering buying trains and spare parts from China in the future.

“In three to five years from now, Asia and China in particular can assume a key role in supplying Deutsche Bahn with trains and spare parts,” board member Heike Hanagarth told German newspaper Frankfurter Allgemeine Zeitung on Tuesday.

According to Hanagarth, Deutsche Bahn’s objective is to cooperate with Chinese train makers CSR and CNR, and the company plans to open a purchasing office in Beijing as early as this coming fall.

As a first step, Deutsche Bahn would reportedly start to buy part of its annually required 35,000 wheel sets in China from 2017. Enditem

Source Xinhua

Editor Xuefei Chen Axelsson