Financial Crisis Spreads From US to World Markets

The crisis in world financial markets began when prices started declining in the US real estate market in late 2006. So far, it is estimated that banks worldwide have had to writedown more than $550 billion in assets.

Here is a chronology of major events:

March/April 2007: New Century Financial corporation stops making new loans as the practice of giving high risk mortgage loans to people with bad credit histories becomes a problem. The International Monetary Fund (IMF) warns of risks to global financial markets from weakened US home mortgage market. Continue reading

China Boosts Yuan Swaps, Store Payments as Dollar Concern Grows



April 2 (Bloomberg) — China’s leaders, increasingly concerned about the nation’s $740 billion of U.S. Treasuries, are making it easier for trading partners and consumers to do business in yuan. Continue reading

Less Chinese companies established in 2008

BEIJING, March 21 (Xinhua) — China’s industry and commerce authorities said Friday that the number of businesses established in China rose only 0.78 percent year-on-year in 2008, much slower than an average of 5 percent growth in recent 5 years.

    As of the end of 2008, the number of businesses totaled 9.71 million, up 0.78 percent, or 74,900, over the same period in 2007,the State Administration For Industry and Commerce (SAIC) said.

    Private sectors and foreign-funded companies remained stable growth despite the global financial crisis. By the end of 2008, the number of private businesses stood at 6.57 million, up 9 percent, or 543,700.

    The number of foreign-funded companies rose 7 percent to 434,900 last year, with total investment exceeding 2.32 trillion U.S. dollars, up 10.21 percent year-on-year.

    The total registered capital of all businesses rose 12.42 percent to 43.48 trillion yuan (6.35 trillion U.S. dollars), the SAIC said.

    The statistics also showed that more companies had been established in the western and central areas as the country tried to transit more industries to the regions, while the number of companies fell in more-developed eastern region due to the financial crisis.