This is a part of the deals reached during Ms. Wu Yi and Mr. Paulson’s talk today. Here is an excerpt from MSN.
“Under the agreement announced Wednesday, starting this year, U.S. carriers will be able to operate 13 new daily flights to China within five years. One new flight will be awarded this year and one in 2008, four new flights will be awarded in 2009, three more in 2010, and two each in 2011 and 2012.”
I also found the following very interesting, from Financial Times.
“China said it would lift the block on new securities joint ventures, and in time let these firms participate in a wider range of activities. Foreign banks would be allowed to issue local currency credit and debit cards, and the ceiling on the amount qualified foreign institutional investors could invest in domestic financial markets would rise from $10bn to $30bn.”
I believe a boost from $10 b to $30 b is very good news for Chinese blue chip stocks, such as 000002.SZ (Vanke) and 600036.SS (China Merchants Bank). This is because QFII fund managers usually base investment decisions on fundamentals.