Russian firms rush to open Chinese bank accounts

Re:Russian firms rush to open Chinese bank accounts by kasey_junk on Thursday March 03, 2022 @09:56AM (#30541822)

Bigger than the peg are the problems with moving the yuan out of your bank accounts once it’s in China. Their currency controls are some of the tightest in the world and getting more so since COVID.

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Re:Russian firms rush to open Chinese bank accounts by brobinson on Thursday March 03, 2022 @10:49AM (#30542498)

There are ways around it: https://en.wikipedia.org/wiki/Panda_bonds

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Re:Russian firms rush to open Chinese bank accounts by kasey_junk on Thursday March 03, 2022 @11:16AM (#30542901)

There are. They are still denominated in yuan though so you have to fx them through an illiquid fx market that suffers from currency controls.

Further the rules for whether you can or how much you can repatriate the proceeds from this bonds changes ~yearly at the whim of an opaque bureaucracy and they are very new instruments comparatively.

All that’s to say the yuan needs to be liberalized or companies have to invent new finance operations before China takes over the finance sphere. That doesn’t happen fast.

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Re:Russian firms rush to open Chinese bank accounts by DrBazza on Thursday March 03, 2022 @10:31AM (#30542285)

We'll just see a repeat of the Deutsche Bank laundromat:

https://www.theguardian.com/business/2019/apr/17/deutsche-ba...

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