China is no particular ally, and we can expect them to behave cagily in their own long-term interest. However, they announced something very interesting earlier this week: they’ll replace the $62T securities exchange in Europe with their own Hong Kong-based exchange, just as Von der Leyen and others have cast about for ways to expand the war. Not on our dime, China seems to be saying.
Recall that China has attempted to broker peace between Russia and “Ukraine” (globalist factions) before, and just saw Zelensky’s bad faith showing with Trump. They want no part of thermonuclear or hypersonic missiles being fired to their west.
As eurocrat leaders praised Zelensky for his intransigence, and made plans for an E800 billion mobilization, China quietly pulled the financial rug.
Canada too has become bellicose, with Chrystia Freeland suggesting that UK and France put them under a “nuclear umbrella” — against the U.S. This same week, China has announced 100% tariffs on Canadian exports. (But not against US goods, where tariffs only mirror what Trump has emplaced - 10-20%). Interesting and probably symbolic.
From the Financial Times (archived below)
Hong Kong authorities are pushing to create an Asian rival to Europe’s influential securities depositories, in a bid to lessen dependence on western financial infrastructure and boost global use of the renminbi.
Hong Kong Exchanges and Clearing, which runs the stock market, said on Tuesday it was working with the territory’s monetary authority to develop an Asian international settlement house that could rival Belgium’s Euroclear and Clearstream of Luxembourg.
China has sought to reduce its dependency on western financial systems amid growing geopolitical tensions and comes as Europe moves to seize €200bn of frozen Russian assets, to strengthen its hand in negotiations over a ceasefire in Ukraine.
Settlement houses play a critical role in financial markets, safeguarding assets, maintaining records and transferring assets from seller to buyer.
HKEX and the Hong Kong Monetary Authority said the venture would provide a platform for Beijing’s ambition to “internationalise” the renminbi, by deepening the use of the currency as a global reserve asset and for settling trades. It would “advance the development of Hong Kong’s fixed-income market, enabling the next chapter of renminbi internationalisation and enhancing Hong Kong’s status as an international financial centre”, said Bonnie Chan, chief executive of HKEX. […]
Foreign investors would be able to manage renminbi-denominated bond liquidity and hold global assets under Hong Kong’s jurisdiction.
The HKMA has been exploring the creation of a competitor to the European duo since at least June 2022. China is the world’s second-largest fixed-income market at about $25tn while CMU holds $5tn in assets under custody. By contrast, Euroclear, the market leader, holds around $42tn while $20tn sits at Clearstream.
Recall that China has attempted to broker peace between Russia and “Ukraine” (globalist factions) before, and just saw Zelensky’s bad faith showing with Trump. They want no part of thermonuclear or hypersonic missiles being fired to their west.
As eurocrat leaders praised Zelensky for his intransigence, and made plans for an E800 billion mobilization, China quietly pulled the financial rug.
Canada too has become bellicose, with Chrystia Freeland suggesting that UK and France put them under a “nuclear umbrella” — against the U.S. This same week, China has announced 100% tariffs on Canadian exports. (But not against US goods, where tariffs only mirror what Trump has emplaced - 10-20%). Interesting and probably symbolic.
https://archive.is/xv9gn