has become a buzzword of finance

Since its financial crisis, "leverage" (deleverage) has become a buzzword of finance, but also caused many investors to suffer.　　As Italy's level of bond yields break 7%, amid concern Europe and the de-leveraging of financial institutions, in early November Hang Seng index in Hong Kong in less than one day collapse 1000, is proof. But everything always has two sidesSex.　　Deleveraging is in full swing, perhaps to create better opportunities for RMB's internationalization. To understand this issue, may wish to take a look at the deleveraging is going on. The so-called deleveraging, simple understanding is to reduce the company's debt. For the banks, debt reduction, mean increased proportion of equity interests in total assets. Whether United States subprime or the EuropeanChau sovereign bonds last is closely related to the banking books in their own capital. Under normal circumstances, these "toxic debt" as borrowing collateral – between banks or institutions when these reduced collateral value, the easy financing to try "unwinding", or increasing the number of collateral or cash supplement. Of the banking system itself has its own very limited interest, when the market value of collateralPlunge in credit crisis of the financial system will be thrown. When no material and with the United States sovereign rating is of Fannie and Freddie bonds to be reduced to no market value of collateral. But after a warning from the United States debt, investor concern about the European debt more. United States very clever and very high-handed disregard of others against, first change the accounting standards, allowed the banks no longer to "market" to determine the "toxic debt" in the BillOn the value, then the Fed started printing press, Bank "unwinding". Europeans not so-the end of October, the European Summit to require banks to improve capital ratios before June 30 next year to 9%.　　Politicians also called banker from "folk" financing, enriching equity capital to offset the effects of European debt declined in value. EU calls on bankers will certainly comply with –-The European bankers how to respond to Mr Sarkozy's so-called "voluntary" impairment of Greece debt after they know that deleveraging process of European financial institutions than the United States more thoroughly – this means that a large number of European funds can Europe back from other markets at home. In Hong Kong, China, Europe and a considerable proportion of the total credit market, particularly in the securities market, more than half of。 As Hong Kong has no capital entry/exit restrictions, which can be huge amounts of money to bring up the market throughout the day. Most of the time of the year, and European debt not detached of the Hong Kong Stock Exchange total return lagging far behind the US and European markets, this de-leveraging that it's hard not to give someone like. Recently, foreign banks began tightening credit in Hong Kong diablo 3 gold, the abolition of preferential HIBOR floating rate mortgage rates, The signal is not good either. But if the Chinese Government and Chinese financial institutions can take full advantage of the opportunity to fill the European and US institutions to deleverage void left by, perhaps now is precisely the Yuan great opportunity to enter the Asian market, the internationalisation. Such opportunities can be funded by credit institutions in the local market and to expand its range of use to achieve.Internationalisation focuses on trade means of payment at this stage. Deleveraging means in Europe and possible credit reduced to overseas traders.　　Already have European trade representatives complained that get credit from a Bank began more difficult in the near future, cash withdrawals are only thousands of euros or less. China should encourage their financial institutions to increase exposure in all major markets,Apart from the mergers and acquisitions, should also be allowed in the Renminbi credit funded organizations have more space and flexibility, encourage them to expand RMB business in various markets diablo 3 power leveling, increase in Renminbi loans to local importers. This can serve two purposes, both China's exports, while promoting the business development of Chinese financial institutions at the local and grow capital strength of financial institutions, ChinaEnterprises "going out" strategy. Capital markets perspective, allowing further development of its asset management business in Hong Kong, promoting the innovation of RMB investment products, are able to attract more overseas investors concerned about RMB investment products, increased demand for Yuan. Such requirements are not always associated with the exchange rate, but can also further promote the internationalisation ofExhibition. It is regrettable that policymakers seem to be for internationalisation and development without clear ideas. Some scholars and officials are still tangled in the possible impact of internationalisation. Concerns were mentioned by internationalisation throws hedge fund betting the Yuan to appreciate, but recently, devaluation of the Renminbi appears more than once on the offshore market, heated holding snacks bond yields also conceals nearly 1 time –Worry dished up hedge funds "short" Chinese conspiracy theory. Risk certainly should pay attention to, but as Chief Executive of the Hong Kong Stock Exchange said, never drowned in the bathtub, but never learn to swim. Problems in a rational view of the internationalisation processes more necessary. The long term, let its currency appreciate leading factors in the process will be in the internationalization of RMB take a back seatThe second line.　　Hong Kong's financial services and the Treasury Secretary said in an interview in the middle of November: "(devaluation of the Hong Kong dollar), the worst situation is over, maximum appreciation of the Renminbi has passed sth" K c Chan judgment means the internationalisation needs another driver? If you really have the same driving forces today in Europe and the de-leveraging that's probably a.China's monetary policy makers to promote the internationalisation of opportunity really is not much, because Europe and the currency will not always be vulnerable, and unwilling to accept Chinese assistance with conditions from the eurozone will be able to see, Europe must not lightly its challenges to its monetary hegemony of chance. (Author of Hong Kong's financial industry professionals, accounting and finance at the Hong Kong Polytechnic University PhD candidate)