More foreign capital wanted; Pigs stressing the Party; George Soros sounds another warning about China
China needs dollars and pork.
Investment quota restrictions for Qualified Foreign Institutional Investors (QFII) and Renminbi Qualified Foreign Institutional Investors (RQFII) are going away, officially to “boost financial reforms and opening-up” but in reality also because China needs to increase the inflow of foreign capital.
The Asian Swine Flue epidemic, combined with policy errors, have turned pigs into one of the most pressing struggles for Xi and the Party. The latest inflation data shows the average pork price just jumped 46.7% Y/Y, and in the wake of Hu Chunhua’s August speech stating that fixing the pig problems is an important political task, the State Council today issued a circular outlining several steps to stabilize hog production. Even if those measures work it is going to take a while, and probably a lot of chicken, before this round of pork price inflation moderates.
Hu Chunhua, once seen as a possible future General Secretary, and currently the Vice Premier with res…