It’s back to Greece. As if the Greek drama ever left.
Asian investors showed their optimistic side at the start of the week about a possible debt relief for Greece, after the government presented a new package of fiscal reform measures including higher taxes and lower spending. Shares rose in the region, though the gain was tempered with caution, particularly in Hong Kong. China is on a public holiday, so it’s hard to gauge what’s the sentiment among investors in the mainland, where equities plunged last week. Anyway, eurozone leaders will be holding an emergency summit later in the day to talk about Greece.
Speaking of China, one of the central bank’s top officials said the country is moving closer towards the full convertibility of the yuan, one of the keys in convincing the IMF to include its currency, the renminbi, into its elite circle of currency reserves in addition to the dollar, yen, euro and the sterling. Read on..
China relaxes foreign ownerships rules on some e-commerce ventures. Foreigners can take 100% ownership of “online data handling and trade handling services”, effective immediately. Reuters
China moves closer to full yuan convertibility. That’s what vice governor of PBOC Pan Gongsheng told a wealth forum in Shandong province. China is set to lift the limit on the amount of renminbi that could be exchanged for foreign currency. South China Morning Post (paywall)
Asian shares rise on hopes of Greek debt relief. Greece offered new reform measures to end the stalemate with creditors on its debt and avert a default. The Nikkei closed up 1.3%, the Hang Seng Index last traded 0.6%, while the ASX 200 gained 0.2%. China was closed Monday for a public holiday. CNBC
Two Chinese firms join HK IPO bandwagon. Universal Medical Financial & Technical Advisory Services Co and Guolian Securities Co are planning to raise a total of $1 billion from an initial share sale in the former British colony, ranked the second largest IPO market in the world so far this year. The Wall Street Journal (paywall)
Photo credit: Rog b via Flickr