What is the big deal about the chinese remnibi trading hub that opened in toronto
Chinese suppliers can quote their price in CNY rather than USD (as has been typical), and thus avoid the exchange risk from US dollar volatility- the CNY has been generally appreciating so committing to receive payments in US dollars when their costs are in CNY means they are typically on the losing end of the equation and they have to pad their prices a bit.  Canadian importers will have to buy RMB (typically with CAD) to pay for their orders and Canadian exporters can take payment in RMB if they wish, or set prices in CAD. By avoiding the US dollar middleman the transactions are made less risky and incur less costs. Japan did this many decades ago (they, too, used to price their products in USD).  This is important in transactions of large amounts, not so much for the tiny amounts associated with tourism. Two-way annual trade between China and Canada is in excess of $70bn.  Of course Forex trading may greatly exceed the actual amounts required for trade- the world Forex market is at least an order of magnitude greater than size of real international trade. All that trading in currency and financial instruments means more jobs on Bay Street and more money flowing into a very vital part of the Canadian economy.  Recent article from the (liberal) Toronto Star here.
Those are towns with dwindling populations. Val D'or, the core of it, for instance is like 2 miles by 2 miles and has 3 McDs. All the kids in the province go study in bigger cities like Quebec or Montreal when fall comes because college is practically free and university is really cheap. This is not news, merely that those towns have too much fast food joints for their population anyway. Obviously China whispered to NK to chill. But the tweetmaster had been bullhorning about China being the control in that area of the world and not being active in that role while also sending the fleet. And it finally happened, after the UN tightened their trade down. So thats actually 3 things. UN action, China co-operation, NK standdown. "[Link 1] (https://www.bloomberg.com/news/articles/2017-06-12/two-chinese-provinces-falsified-economic-data-inspectors-say)  [Link 2] (https://www.ft.com/content/a5bf42e2-03cf-11e7-ace0-1ce02ef0def9)  [Link 3] (https://www.ft.com/content/0361c1a4-bcfe-11e6-8b45-b8b81dd5d080)  China has been cooking their books, just like the U.S. has been doing it the past few years.  Just google ""U.S. Central banks buying stocks and bonds"", then connect the numbers.   **Insider Information:** At my previous company we sold solar manufacturing equipment.  I went to said Chinese city that bought our equipment.  They were producing ton loads of solar panels, I asked one of the manager's where all of the panels were being sold (domestic, or international?).  To my surprise, he said they warehoused the panels they produced; because, there weren't enough customers.   And, why were they warehousing the panels?  Because, the Chinese government needed to show numbers that jobs were plenty, and manufacturing was still strong." I'm a bot, *bleep*, *bloop*. Someone has linked to this thread from another place on reddit:  - [/r/talkbusiness] [Starting a restaurant in Toronto (Canada)](https://np.reddit.com/r/talkbusiness/comments/789f5l/starting_a_restaurant_in_toronto_canada/)  [](#footer)*^(If you follow any of the above links, please respect the rules of reddit and don't vote in the other threads.) ^\([Info](/r/TotesMessenger) ^/ ^[Contact](/message/compose?to=/r/TotesMessenger))*  [](#bot) Well that is another story altogether.   Cynically, I would say that having HK as an international financial center under Chinese sovereignty makes it easy for officials within the CCP to launder money outside the country, because most people with money in China want to go elsewhere, or because they feel uneasy about their chances of being shot for corruption. Why, even Xi Dada has his two flats in the Grand Hyatt here...  But HK is in trouble because this might not be reason enough... EFA must be bought and sold in US dollars. XIN allows people to buy and sell EFA in Canadian dollars without exposing their investment to unpredictable swings in the USD/CAD ratio.  This is what's known as a currency-hedged instrument. Now, why the chart sums up to over 100% is anyone's guess.  Presumably it's the result of a couple hundred rounding errors from all the components.  If you view their most recent report, it also sums up to over 100%, but at least the EFA component is (sensibly) under 100%. P.S. I'm not seeing where it says there's only one holding.  There's the primary holding, plus over 100 other cash holdings to effect the currency-hedging. This factory is also for cars being sold into China. It makes sense for the factory that serves the China market to be close to where the cars are going. Especially since so many of the components of the car are made in China in the first place. (Toyota, VW, BMW, etc make cars in the US for a reason!)   EDIT: My original comment said these cars were only for the Chinese market and that is wrong. It will be painful for the world, but not in the same way that the Western financial crisis of '08 was painful.  This will mostly hurt China, as well as western companies whose marginal revenue and growth is dependent upon Chinese business. "This is the best tl;dr I could make, [original](http://www.baldingsworld.com/2017/10/23/everything-we-think-we-know-about-chinese-finances-is-wrong/) reduced by 96%. (I'm a bot) ***** &gt; We do not know what these assets hold other than three broad categories comprised of guarantee, commitment operations, and financial asset services which even then only comprise 79% of the total 253 trillion.  &gt; Chinese citizens and firms have a very real interest in switching into similar foreign assets while foreigners have very little interest in switching into Chinese assets.  &gt; I have long noted that there is fundamentally, absent controls, a much larger structural non-cyclical interest in purchasing foreign assets by Chinese than in purchasing Chinese assets by foreigners.   ***** [**Extended Summary**](http://np.reddit.com/r/autotldr/comments/78e60t/everything_we_think_we_know_about_chinese/) | [FAQ](http://np.reddit.com/r/autotldr/comments/31b9fm/faq_autotldr_bot/ ""Version 1.65, ~233958 tl;drs so far."") | [Feedback](http://np.reddit.com/message/compose?to=%23autotldr ""PM's and comments are monitored, constructive feedback is welcome."") | *Top* *keywords*: **asset**^#1 **Bank**^#2 **financial**^#3 **China**^#4 **balance**^#5" Here is a list of threads in other subreddits about the same content:   * [Wealth Management Products in China [pdf]](https://www.reddit.com/r/Economics/comments/78kwt4/wealth_management_products_in_china_pdf/) on /r/Economics with 3 karma (created at 2017-10-25 10:50:52 by /u/LtCmdrData)  ----   ^^I ^^am ^^a ^^bot  ^^[FAQ](https://www.reddit.com/r/DuplicatesBot/wiki/index)-[Code](https://github.com/PokestarFan/DuplicateBot)-[Bugs](https://www.reddit.com/r/DuplicatesBot/comments/6ypgmx/bugs_and_problems/)-[Suggestions](https://www.reddit.com/r/DuplicatesBot/comments/6ypg85/suggestion_for_duplicatesbot/)-[Block](https://www.reddit.com/r/DuplicatesBot/wiki/index#wiki_block_bot_from_tagging_on_your_posts)  ^^Now ^^you ^^can ^^remove ^^the ^^comment ^^by ^^replying ^^delete! There's huge slack in Asia it still needs to absorb before it has to worry about dilution. This was a record number, but it was only 9% growth over last year, and half were in ASPAC. As china's financial sector booms it's natural that the number of people there sitting for the CFA would explode as well. Also I think everyone forgets that a lot of the time U.S. Bonds are the ONLY place to park money. Where else can someone invest 1.5 trillion? I think between the bond yields and inflation rate, China isn't really making a profit on this investment.  Better to lose a little than a lot I guess. The problem with the U.S. is that they don't use this profitable scheme to pay down debt. I apologize to you too :) the first comment I made I thought was pretty funny so I felt a little surprised when I saw it the next day.   Yeah, China has improved and most people who have office jobs or are small business owners play. Apple actually tried to use the hunger tactic of selling iPhones, they would release them in every country then finally starve china so when it's released everyone flocks. Then Chinese people mini revolted and apple lost like 2 billion or smt, and had to apologize. Mob rule is pretty powerful sometimes ;)  Where in Australia did you live? I was in the Gold Coast before also moving to the states. "Amazon has some major issues with growing out in Seattle, primarily infrastructure and geography. Seattle's infrastructure is stretched, leading to some hilarious activity - ""http://kuow.org/post/seattle-traffic-got-so-bad-guy-started-flying-work"". Also, Seattle is locked between the sea and the mountains, and with a limited supply of land, there isn't anywhere to build economically. NO ROOM TO GROW.  Ontario has a few good things going for it: Healthcare, Immigration, Low corporate taxes, Education...   But there are also some elephants.   Ontario has some of the highest land costs in the world, longest commute times on the planet, and a government which will inevitably need to raise taxes.  If I had to bet, we'll probably see Amazon set up shop in a City with low land costs, ring roads, and a low debt government. A place with room to grow.   Raleigh/Durham Dallas-Fort Worth Denver Minneapolis Salt Lake City Cincinnati" This story really misses the point of this deal. This is not an inversion fueled by tax savings. In fact, it would likely end up in very little tax savings for the new companies given the effective tax rate that BK actually pays in the US (They actually pay 27% in the US vs about 26.5% in Ontario, where Tim Horton's is now).  Headquartering the new company in Canada has a lot more to do with placating Canadian regulators. The Investment Canada Act allows for the government to block any merger it doesn't see as in the best interests of the country. Clearly, one of it's biggest and most visible companies  being swallowed up by an American firm could fit that description. Politically, it is easy to see why regulators would have an issue with that.  However, if you make the new company Canadian... then it's seen as a win for regulators.