Economy of China
Yuan Life Insurance
The growth if Yuan products in Hong Kong have been faced by scarcity of investment challenge rather than the instability of the currency. The fall of the currency in the previous months did not affect buyers of insurance policies in any way as they were focused on higher growth rate of Yuan. Two thirds of the insurance premiums were generated from the sale of the currency policies in the year 2012. Policy buyers would not stop buying policies considering the effects of the currency fluctuations as they are assured of making profits in the future. The rate of Yuan dropped by 2.9 percent this year since investors’ perception on the economy changed. Top continue popularizing the use of the currency, BOC life Insurance Company offered an exchange assurance to all policy buyers buying Yuan policies. Hong Kong insurance companies have initiated the currency products. The companies sold policies worth HK$5 billion last year, which accounted for 10 percent of the total policies. Beijing has however, not allowed the conversion of Yuan. Its policies encourage the use of the currency internationally to help establish trade. If it will allow international investors to invest in the mainland markets, then there is a guarantee for high returns on Yuan policyholders.
Rise of China’s Debt to 226 percent Annual GDP.
Chinese economy has deteriorated making it inflexible for government to protect its banks. China’s markets are faced by systematic and organizational challenges, as they are not fully established. Chinese Banking Regulatory Commission (CBRC) lately ordered smaller banks to reduce their investments in goods, which are not based on exchange trading using their funds. China’s debt was about 226 percent GDP last year, and is expected to rise to a rate of 265 percent by 2016 compared the previous years. The ability of China to pay its debts is compared by its production rates and the GDP debt ratio. If the debt -Gross Domestic Product ratio is high, then China will not be able to pay its debts since this leads to higher interests rates for all its creditors. If China is at a stable level, then it is easier for them to pay creditors interests. In terms of the economy size, China’s economic position has surpassed that of United States but it is clear that the country has high debts than USA.
Investment Opportunities in Ningbo, China
Ningbo is ranked among the top cities in terms of economic developments in China. Its geographic location gives it an advantage over other cities. It has a developed transport system in air, land and sea transport. UN described it as the most promising city of China due to the noticeable reforms it has made in the country. Investment opportunities in Ningbo are from sectors like, information service, creative industry, manufacturing industry, international trade and new strategic industries. Ningbo’s talent sector and its suitable economic environment attract international talents and create labor opportunities respectively. The cities main development zones are Ningbo’s Free Trade Zones, which comprises of Ningbo Bonded Logistic Zone and Ningbo Export Processing Zone, Zhenhai Economic Development Zone, which comprises of four industrial parks, Ningbo Economic and Technical Development Zone. All this zones generate income for the state. Ningbo`s economic growth ha been contributed by the introduction of modern technologies in Agriculture and industries. Ningbo`s economy is fully established compared to that of Shanghai and Beijing which have a slow economic growth rate.
African Development Bank.
African Development Bank, based in Tunishas initiated plans to lend the country funds to finance its rail projects. In the year 2012, China spent $13 billion in establishing infrastructure, which limited the bank’s spending. The bank, which mainly focuses on funding Africa’s development of infrastructure, is competing with China. China has a fund, which finances African projects (China-Africa Development Fund). China provides both technical expertise and funding for Africa projects, which is fully supported by African Governments. AfDB focus this year is to fund projects mainly in areas of transport and energy it will not be able to achieve this if reforms in the electricity industries are not made.