Chinese capital

Finally writing after kind of settling dowm in UNiversity of Connecticut for exchange. It is cold during winter seaon, from Nov to March. After that i guess the weather will become less cold. But with sufficient clothes, it should be mangable, even for a guy from the tropics like me...

Reuters 23Jan

BEIJING, Jan 23 - China has signed a memorandum of understanding with Singapore allowing approved banks to invest their clients' money in the city state's equities markets, the banking regulator said on Wednesday.

The China Banking Regulatory Commission said it is negotiating similar arrangements with Japan, Germany and the United States.

To date Chinese banks are permitted to invest their customers' money only in Hong Kong and Britain.

The CBRC permitted banks last year to start investing client funds in overseas securities as part of China's Qualified Domestic Institutional Investor programme.

China's currency regulator has so far allocated 23 banks a combined quota of $16.1 billion.

MY take

Now that money from China is allowed to be invested elsewhere, stocks in Singapore should be rising. Singapore should be experiencing higher economic growth and more buffer against a possible American economic recession. However, Singapore should still be prepared for a economic contraction in such an event as US trade is influential in both Singapore and worldwide.
Investments by the Chinese government in Singapore may also be pulled out during a recession to prop up ailing US and Europe markets.