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the central bank added a new Expert: Controlled countercyclical factor to the regime will be current yuan’s pricing regime in May. good option for While the weak dollar and capital outflow control meas further reform ures played key roles, intro ducing the factor helped By WANG YANFEI stabilize market expectations, [email protected] and diminished expectations that currency was on a weak China has further room to ening trend, according to improve the current con Guan. trolled floating exchange rate “The improved pricing regime, as it moves toward the regime helped beat oneway ultimate goal to allowing the bets on the currency, guiding yuan to float freely, said a the market to pay more atten former senior official with the tion to changes in economic nation’s top forex regulator. fundamentals and fluctua Guan Tao, a former senior The improved pric tions in multilateral exchange official with the State Admin rates,” he said. Two employees of Kweichow Moutai Co package liquor at the company’s production line in Maotai town in Guizhou province. istration of Foreign Exchange, ing regime helped The recent stronger yuan PROVIDED TO CHINA DAILY said the central bank has reflected the market’s adjust made proper adjustments to beat oneway bets ment to betterthanexpected the current pricing regime by on the currency.” economic fundamentals, adding a countercyclical fac instead of central bank’s inter Holiday season gives Moutai cheer tor in May, but it is still a “tran Guan Tao, a former senior offi vention, according to Guan. sitional means”. cial with the State Administration By the end of Friday, the A controlled but not trans of Foreign Exchange yuan index stood at 94.03, up By ZHU WENQIAN Change of Kweichow Moutai Co's share price (2016-17) ance of other leading Chinese parent floating regime will be by 1.17 points compared to the in Beijing and liquor companies has been 540 a good option to further imple previous week, latest data in Guiyang 72% outstanding. On Monday, YANG JUN 500.10 ment reform, because abso be properly evaluated in order from the China Foreign shares of Sichuanbased Wul 480 lute transparency might to prevent risks, according to Exchange Trade System Kweichow Moutai Co, the 53% iangye climbed 2.46 percent trigger cyclical behavior in the Guan. showed on Monday. bestknown highend Chi to close at 57.38 yuan, and 420 market, and is not appropriate The central bank imple In the meantime, the gov nese liquor, has witnessed ris 34% shares of Sichuanbased Luz under current circumstances, mented a fixing mechanism ernment is able to allow more ing demand and a supply houLaojiao Group edged up according to Guan. change on Aug 11, 2015, result domestic nonbanking finan shortage in the weeks leading 360 0.72 percent. In the long run, using a for ed in the yuan plunging more cial institutions and foreign up to MidAutumn Lantern 15% Shenwan Hongyuan Secu mula to price the currency will than 6 percent against the dol investors to enter the forex Festival and the National Day 300 rities said Chinese liquor has -5% not be the ultimate choice, lar and reaching its lowest market, because more diversi holiday. 287.56 been performing well and because exchange rate man point since 2008. fied participation will help With more people ordering 2016/7/21 2017/1 2017/4 2017/8/14 exceeding expectations in the agement cannot make choices “Based upon the yuan’s per avoid similar risks, he said. Moutai for family dinners Source: sina.com.cn LIU LUNAN / CHINA DAILY second quarter. The price of on behalf of the market, he formance since the reform two He said China also needs to and banquets, retailers said Moutai is likely to increase in said. years ago, steps can be taken strengthen efforts to imple they are experiencing a short inventory, meaning there will nearly 50 percent this year. the second half year amid a Prior to seeing a clean float when the circumstances are ment supplyside reform, age, and expect a further be 100 tons of Moutai liquor Moutai’s market value bullish market. of yuan’s exchange rate, or a favorable,” he said. because economic fundamen jump in business with the available on the market. exceeded 600 billion yuan, In the next two to three free float mechanism, any In comparison, the yuan tals are vital to implement arrival of the festival. At some supermarkets and which topped that of other years, Moutai’s imbalance steps moving forward should gained against the dollar after exchange rate reforms. A 500 ml bottle of Moutai’s liquor stores, a 500 ml bottle global liquor producers. between supply and demand classic Feitian 53 percent of Moutai’s classic Feitian 53 On Monday, Moutai shares is expected to level off, and its liquor has been selling for as percent liquor retails for as jumped 3.26 percent to close price has the potential to con much as 1,299 yuan ($195) on much as 1,500 yuan. at 499.83 yuan ($75). Its tinue to rise, it said. Currency expected to be on JD.com, one of China’s lead In order to control the mar share price is now the highest BOC International said it ing online shopping plat ket price, Moutai appointed among listed Chinese compa will maintain a buy rating for forms. Consumers need to 70 sales outlets in Beijing to nies. Moutai shares. It forecasts click the “rush to purchase” provide products at 1,299 At one point during trad that in 2018, the share price the higher side in second half button as the stock is tight, yuan per bottle, and the com ing on Monday, its share price of Moutai is expected to reach and each account can only pany will soon apply similar reached a record 500.1 yuan, 600 yuan, higher than its ear By CAI XIAO tral and southern regions,” purchase one bottle at this policies nationwide. becoming the first Chinese lier prediction of 550 yuan. [email protected] said Malmgren. price. Meanwhile, its share price stock to be traded at more She added that the most Starting from Aug 15, has been consistently than 500 yuan in the Ashare Contact the writers at The yuan is expected to be dynamic state among the Moutai plans to supply 4,500 advancing. So far, the share market. zhuwenqian@ on the higher side in the sec regions is Texas because it is tons of liquor to increase the price of Moutai has surged In addition, the perform chinadaily.com.cn ond half of 2017 as China’s cap growing very fast and has a ital outflows reduce and strong entrepreneurial environ optimism grows over the ment. Texas is the center of bio nation’s economic growth, medical research in the US, and Nation on track for 5 maglev lines by 2020 said a senior US economist. its capital Austin is a new “Sili “As Chinese companies have con Valley” with strong software fewer outbound mergers and and hardware industries. By ZHONG NAN acquisitions this year, capital China was the thirdlargest in Beijing and ZHANG outflows are also lower,” said inbound M&A investor in the XIAOMIN in Dalian, Liaoning Pippa Malmgren, a US econo US in 2016, with deals worth mist who served as an advisor $62.6 billion. In the first half of China will operate more to former US President George 2017, however, China ranked than five magnetic levitation W. Bush on economic policy only ninth, with $6.1 billion rail lines with maximum and financial markets. As Chinese worth of deals, according to a speed of 160 kilometers per “In the first and the second report from international law hour in cities including quarters, China’s GDP grew at companies have firm White & Case. Chengdu, Wuhan and a respectable rate of 6.9 per Inbound activity from Chi Guangzhou by 2020, said its cent yearonyear, beating fewer outbound na, one of the most active manufacturer CRRC Dalian expectations.” mergers and M&A investors in the US in Co Ltd on Monday. “So I believe the yuan will recent years, has fallen sharply A new generation of Chi become stronger in the second acquisitions this so far this year due to a combi nese mediumtolow speed half of this year,” she said. nation of growing protection magnetically levitated or The currency, which at the year, capital ism in the US and tighter maglev trains, manufactured start of the year traded at its outbound M&A regulation in by CRRC Dalian, a subsidiary A new generation of Chinese mediumtolow speed maglev trains, which can run at a maximum weakest level since 2008, has outflows are China, said the report. of China Railway Rolling speed of 160 kph. PROVIDED TO CHINA DAILY roared back since the end of Malmgren said regarding Stock Corp, completed test May. also lower.” US regulations on crossbor runs at a test speed of 120 kph Malmgren also said the der mergers and acquisitions, in Shanghai earlier this lowing eight years of research under 100 kph. As the test Beijing is building a low United States welcomes Chi Pippa Malmgren, Chinese investment is poten month. The vehicles are and development by both line in Shanghai was only 1.7 speed maglev urban rail nese companies’ investment a US economist tially more complex due to expected to enter the market CRRC Dalian and Chengdu kilometers long, tests at 160 route — the S1 line — which in infrastructure areas offer strategic security issues within a year. based Southwest Jiaotong kph could not take place. Qu will start in northern Bei ing mutual benefits. between the two nations. “Even though metro trains University. said that led CRRC to build a jing’s Haidian district, pass “The Trump administration “China and the US are very can meet the demand to “The mediumtolow speed new test line at a length of through Shijingshan district has promised to improve $6.1 billion aligned on the commercial transport a large number of maglev trains can better con between 5 and 6 kilometers. and end in Mentougou dis infrastructure in the US such worth of M&A deals by side, but have different objec passengers from one location nect cities and suburbs, and “Compared with other trict in the city’s western out as upgrading airports and rail Chinese buyers in US in H1 tives on the strategic security to another, it is too costly to can be exported to foreign types of urban rail transpor skirts. The 11km line will ways, but they do not have side,” she said. “I think the two build the infrastructure and markets,” said Qu. tation, maglev trains are qui become operational during enough money,” said Malm countries will reach a compre difficult to control the noise,” More than a dozen Chinese et and can achieve high the fourth quarter of this gren. “If China prepares to hensive agreement including said Qu Tianwei, chief engi cities, including Tianjin, speeds because they don’t year. invest in these areas, the US attractive destinations for Chi diplomatic and economic neer of CRRC Dalian. “In Hangzhou and Shenzhen, are actually ride on the rails with China’s first mediumto side will be very welcome.” nese investors seeking merg issues.” addition, they cannot run planning to launch maglev wheels but hover centimeters low speed maglev rail line “It is good for the US to have ers and acquisitions in the Jing Ulrich, vicechairwom very fast.” services by 2020, especially above the track through the started operation in 2016 in more interaction with China hightech and biomedical sec an of AsiaPacific at JPMorgan The new maglev train’s between their city center and use of magnets, avoiding the Changsha, the capital of Hun on greenfield investment and tors. Chase & Co, said Chinese maximum operating speed airports, the city and subur slower speeds caused by fric an province, making China mergers and acquisitions,” she “The US economy is looking investors will continue to have can reach 160 kph and has ban areas, and the city and tion,” said Sun Fuquan, a one of the first nation’s to said. stronger than people expect active M&As in the second half advantages including low surrounding counties. researcher at the Chinese master such technology. Malmgren said the central ed, and the most dynamic of this year because there vibration and noise, a strong China has already devel Academy of Science and and southern regions of the parts are no longer the east remains a strong demand for er climbing capacity and a oped the technology to run Technology for Development Contact the writers at zhong United States can be the most and west coasts, but the cen industrial upgrading. shorter turning radius, fol maglev trains at a speed of in Beijing. 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