Economy

RMB 2nd-most Used Trade-Finance Currency

Latest statistics from global transaction services organization SWIFT （the Society for Worldwide Interbank Financial Telecommunications） show that in October 2013， Chinas Renminbi （RMB） overtook the euro to become the second-most used currency in world trade finance.

According to SWIFT， the RMB usage rate in trade finance， such as letters of credit and collection， jumped to 8.66 percent last October from 1.89 in early 2012. The RMBs rise notwithstanding， the U.S. dollar maintains cast-iron dominance. With a usage rate of 81.08 percent， the greenback remains the leading currency in trade finance.

The five countries and regions with the highest usage of RMB for trade finance last October are Chinas mainland， Hong Kong， Singapore， Germany and Australia.

“The RMB is clearly a top currency for trade finance globally and even more so in Asia，” SWIFTs Asia Pacific head of payments and trade markets Franck de Praetere said.

China Leads the World in Web Retail

A spike in orders from Chinese online shoppers has won the country the accolade of the worlds largest Internet retail market.

The nations online retail sales value is expected to soar from US$294 billion in 2013 to US $672 billion by 2018 at a compound annual growth rate of 18 percent， according to the U.S.-based consultancy Forrester Research Inc.

Forrester forecast that the 2013 web retail value of the U.S.– formerly the largest Web retail market – would reach US $262 billion. The worlds largest economys predicted annual growth of online retail sales to the year 2017 is around 10 percent propelled， according to Forrester， by a strong economic rebound.

Capital Account Prominent in Shanghai FTZ Reform Guidelines

The Peoples Bank of China， Chinas central bank， issued on December 2 detailed financial reform guidelines to support the Shanghai Pilot Free Trade Zone （FTZ）. Covering multiple fields of financial reform and innovation， the guidelines explore ways of facilitating investment and financing remittance and promoting cross-border use of the RMB， pushing forward marketoriented reform of the interest rate， and deepening foreign exchange reform and risk control. By promoting crossborder investment and financing and expanding means of risk hedging， the new policy provides financial institutions with broader space for business development.

Among the many fields the guidelines cover， the most impressive is its opening of a capital account. “The biggest step the PBC took was allowing individuals in the Shanghai FTZ to invest in overseas markets，” chief economist of Industrial Bank Co.， Ltd. Lu Zhengwei said.

According to the guidelines， individuals working in the Shanghai FTZ meeting specific requirements will be allowed various offshore investments， including investment in securities. Foreign nationals working in the FTZ will be permitted to open nonresident individual accounts with financial institutions within the FTZ to undertake various investments in China， in accordance with state investment regulations.

RMB Clearing Services to Debut in U.K.

The Agricultural Bank of China （ABC） and Standard Chartered Bank signed a memorandum of understanding last December in Beijing signifying their partnership in providing RMB clearing services in the U.K. The first to offer this service， the two banks will enable financial institutions and companies to execute RMB transactions in London.

“By integrating their respective strengths in network and funding the ABC and Standard Chartered will act as local RMB clearers， provide comprehensive trade， investment and financing services to market players in London， and support Chinese companies operating in the U.K. with a package of cross-border financial solutions，” ABC president Zhang Yun said.

London is the worlds largest foreign exchange transaction center， and the debut of the RMB clearing service will cement its position as a leading offshore RMB center. It will also help raise awareness and hence development of more RMB-related products and services， in such areas as trade finance， global cash management， asset management and bond settlement， through improved efficiency in the London time zone.

157 People

The Wealth-X and UBS Billionaire Census 2013 shows that there are 157 billionaires in Chinas mainland， the second largest concentration worldwide after the U.S.， where the number is 515. Their total wealth is valued at US $384 billion. With an average age of 53， Chinese billionaires are nine years younger than the global level. This ultra-rich group in Chinas mainland has expanded by seven percent since last year， and its wealth has grown by about one percent.

RMB 18 Trillion

Commerce Minister Gao Hucheng recently disclosed that Chinas online retailing volume soared 30-fold over the past five years， and e-commerce transactions would exceed RMB 18 trillion by 2015. His ministry is working on a law to safeguard electronic business development. In 2012 Chinas e-commerce transactions hit RMB 8 trillion， up 31.7 percent year-on-year. Online retail sales topped RMB 1.3 trillion， a rise of 67.5 percent from 2011.

Commercial 4G Starts on December 18

China launched commercial 4G mobile communications services on December 18， bringing the most advanced telecommunications technology to the countrys more than one billion mobile users.

China Mobile， the countrys biggest mobile operator with over 700 million users， started 4G services on that date with a new brand He， meaning harmonious in the Chinese language.

Users in Beijing， Guangzhou and Chongqing are the fi rst to enjoy commercial 4G， or fourth generation， services. Shanghai， which is still building a citywide 4G network， will launch the services later.

The 4G phone will become rapidly popular on Chinas mainland， thanks to the low cost of 4G phones， according to China Mobile President Li Yue， who expects some 4G phones priced below RMB 1，000 to appear in the second half of 2014.

Apple Inc is also set to introduce iPhones supporting the 4G network in China， industry insiders said.

30 Percent

At a conference organized by the Chinese Association on Tobacco Control， Yang Gonghuan， former deputy director of the Chinese Center for Disease Control and Prevention， revealed that about 30 percent of people trying to quit smoking fail due to lack of support. He said that as many as 91.4 percent of people intent on kicking the habit have no access to any relevant services from public institutions. Some scholars at the meeting suggested tobacco control medication should be covered by medical insurance.

First Chinese Winner of UNESCO Kalinga Prize

On November 25， Chinese scientist Li Xiangyi won the 2013 UNESCO Kalinga Prize for the Popularization of Science， becoming the fi rst Chinese laureate of the award.

Professor Li， an academic and popular science expert， was one of the founders and subsequently director of the China Science and Technology Museum. He also led the Science Popularization Department of the China Association for Science and Technology， which promoted science in rural areas， factories and mines. He launched the fi rst national study on the spread of scientifi c knowledge， and was a regular and widely-recognized speaker on science popularization and education throughout the country.

Created in 1951， the UNESCO Kalinga Prize for the Popularization of Science is awarded every two years. It rewards people who， over the course of their careers， have helped interpret science， research and technology to the public and raise awareness of the international importance of science and technology. Li was selected by UNESCO Director-General Irina Bokova on the recommendation of an international jury.

Beijing Opens Carbon Emissions Trading

Beijing opened carbon emissions trading on November 28， making it Chinas third market for compulsory carbon trading.

An initial 490 companies， whose carbon emissions account for 40 percent of the citys total， have been included in the scheme， according to Beijing Municipal Commission of Development and Reform.

Under the trading program， companies that produce more than their fair share of emissions can buy unused quotas on the market from companies that cause less pollution.

On November 26， Shanghai opened its compulsory carbon trading market， the countrys second. Southern Chinas Shenzhen City launched its market last June.

The National Development and Reform Commission， Chinas top economic planner， has also approved pilot carbon emissions trading schemes in Tianjin， Chongqing， Hubei and Guangdong.

The country has pledged to reduce carbon dioxide emis-

Chinese Scientists Capture First Image of Hydrogen Bonds

Chinese scientists have visualized hydrogen bonds through modifi ed noncontact atomic force microscopy （AFM） for the fi rst time in history， the National Center for Nanoscience and Technology （NCNST） announced on November 20.

Hydrogen bonds are fundamental to the most important molecules in nature. They are responsible for holding the two strands of DNAs double helix together and many enzymes use them to catalyze reactions. Although study of hydrogen bonds began in the 1850s， scientists have not been able to visualize them until now.

A group of scientists with the NCNST has been modifying equipment over fi ve years to create the top non-contact AFM in the fi eld. It has allowed scientists to accurately analyze the structure of hydrogen bonds and directly measure the bond angle and length.

Qiu Xiaohui， one of the groups scientists， said that accurate measurement of hydrogen bonds not only helps understanding of the bonds interactions， but also has great signifi cance in materials science and pharmaceutical development.