The carry of an asset is the return obtained from holding it, or the cost of holding it. For instance, commodities are usually negative carry assets, as they incur storage costs or may suffer from depreciation. But in some circumstances, appropriately hedged commodities can be positive carry assets if the forward/futures market is willing to pay sufficient premium for future delivery. This can also refer . The gold carry trade works as follows. A central bank loans a bank (sometimes called a bullion bank) some gold. The gold lease rate is usually very low. The bullion bank immediately sells the gold and invests in securities with a higher rate of return, such as government long-term bonds. The carry return is the return on the bonds minus the gold lease rate. However, this trade is risky on two.
It is thought to correlate with global financial and exchange rate stability and retracts in use during global liquidity shortages,  but the carry trade is often blamed for rapid currency value collapse and appreciation. A risk in carry trading is that foreign exchange rates may change in such a way that the investor would have to pay back more expensive currency with less valuable currency.
In theory, according to uncovered interest rate parity , carry trades should not yield a predictable profit because the difference in interest rates between two countries should equal the rate at which investors expect the low-interest-rate currency to rise against the high-interest-rate one.
However, carry trades weaken the currency that is borrowed, because investors sell the borrowed money by converting it to other currencies.
The trade largely collapsed in particularly in regard to the yen. The European Central Bank extended its quantitative easing programme in December The EUR was gaining in times of market stress such as falls in China stocks in January , although it was not a traditional safe-haven currency. Most research on carry trade profitability was done using a large sample size of currencies.
The — Icelandic financial crisis has among its origins the undisciplined use of the carry trade. Particular attention has been focused on the use of Euro denominated loans to purchase homes and other assets within Iceland. Most of these loans defaulted when the relative value of the Icelandic currency depreciated dramatically, causing loan payment to be unaffordable. The US dollar and the Japanese yen have been the currencies most heavily used in carry trade transactions since the s.
There is some substantial mathematical evidence in macroeconomics that larger economies have more immunity to the disruptive aspects of the carry trade mainly due to the sheer quantity of their existing currency compared to the limited amount used for FOREX carry trades, [ citation needed ] but the collapse of the carry trade in is often blamed within Japan for a rapid appreciation of the yen.
As a currency appreciates, there is pressure to cover any debts in that currency by converting foreign assets into that currency. This cycle can have an accelerating effect on currency valuation changes.
When a large swing occurs, this can cause a carry reversal. All except the last category are illegal. The state-imposed forced system was formally abolished in but it is not clear the extent to which its various practices have stopped. The Laogai Research Foundation in the United States estimated that there were over a thousand slave labour prisons and camps, known collectively as the Laogai. Prisoners who refuse to work are beaten, and some are beaten to death.
Many of the prisoners are political or religious dissidents, and some are recognized internationally as prisoners of conscience. A Chinese president said that they want to see two products coming out of the prisons: Harry Wu, himself a former prisoner of the Laogai, filmed undercover footage of the Laogai, and was charged with stealing state secrets. For this, Harry Wu was sentenced to 15 years in prison, but only served 66 days before being deported to the United States. Office of the Secretary of Defense — argue that China does not report its real level of military spending, which is allegedly much higher than the official budget.
As a recognized nuclear weapons state, China is considered both a major regional military power and a potential military superpower. China has made significant progress in modernising its air force in recent decades, purchasing Russian fighter jets such as the Sukhoi Su , and also manufacturing its own modern fighters, most notably the Chengdu J , J and the Shenyang J , J , J , and J In August , China tested its first hypersonic flight.
China had the largest economy in the world for most of the past two thousand years, during which it has seen cycles of prosperity and decline. Major sectors of competitive strength include manufacturing, mining, steel, textiles, automobiles, energy generation, banking, electronics, telecommunications, real estate, e-commerce, and tourism.
Its major cities and coastal areas are far more prosperous compared to rural and interior regions. From its founding in until late , the People's Republic of China was a Soviet-style centrally planned economy.
Following Mao's death in and the consequent end of the Cultural Revolution , Deng Xiaoping and the new Chinese leadership began to reform the economy and move towards a more market-oriented mixed economy under one-party rule. Agricultural collectivization was dismantled and farmlands privatized, while foreign trade became a major new focus, leading to the creation of Special Economic Zones SEZs.
Inefficient state-owned enterprises SOEs were restructured and unprofitable ones were closed outright, resulting in massive job losses. Modern-day China is mainly characterized as having a market economy based on private property ownership,  and is one of the leading examples of state capitalism.
Since economic liberalization began in , China has been among the world's fastest-growing economies,  relying largely on investment- and export-led growth. In the years immediately following the financial crisis of , China's economic growth rate was equivalent to all of the G7 countries' growth combined. China's e-commerce industry took off in , marked by the growth of internet giants Tencent and Alibaba - purveyors of products such as WeChat and Tmall that have become ubiquitous in contemporary Chinese life.
China is also second only to the United States in venture capital activity and is home to a large number of unicorn startup companies. In , this sector contributed about CNY 8. China ranks 28th out of countries in the Global Competitiveness Index , above many advanced economies and making it by far the most competitive major emerging economy. This is largely owing to its strength in infrastructure and wide adoption of communication and information technology.
However, it lags behind advanced economies in labour market efficiency, institutional strength, and openness of market competition, especially for foreign players attempting to enter the domestic market. Following the financial crisis, Chinese authorities sought to actively wean off of its dependence on the U. Dollar as a result of perceived weaknesses of the international monetary system.
China was once a world leader in science and technology up until the Ming dynasty. Ancient Chinese discoveries and inventions , such as papermaking , printing , the compass , and gunpowder the Four Great Inventions , became widespread across East Asia, the Middle East and later to Europe. Chinese mathematicians were the first to use negative numbers.
After repeated military defeats by the European colonial powers and Japan in the 19th century, Chinese reformers began promoting modern science and technology as part of the Self-Strengthening Movement. After the Communists came to power in , efforts were made to organize science and technology based on the model of the Soviet Union , in which scientific research was part of central planning.
China is developing its education system with an emphasis on science, mathematics and engineering ; in , China graduated over 10, Ph. The Chinese space program is one of the world's most active, and is a major source of national pride. In , China's first space station module, Tiangong-1 , was launched, marking the first step in a project to assemble a large manned station by the early s.
China currently has the largest number of active cellphones of any country in the world, with over 1 billion users by February By , China hosts more than twice as much national bandwidth potential than the U. China Telecom alone serves more than 50 million broadband subscribers, while China Unicom serves more than 40 million.
China is developing its own satellite navigation system, dubbed Beidou , which began offering commercial navigation services across Asia in ,  and is planned to offer global coverage by Since the late s, China's national road network has been significantly expanded through the creation of a network of national highways and expressways. By October , there were 81 such bridges and tunnels. China has the world's largest market for automobiles, having surpassed the United States in both auto sales and production.
Auto sales in exceeded China's railways , which are state-owned , are among the busiest in the world , handling a quarter of the world's rail traffic volume on only 6 percent of the world's tracks in The railways strain to meet enormous demand particularly during the Chinese New Year holiday, when the world's largest annual human migration takes place. China's high-speed rail HSR system started construction in the early s.
Today it has over 19, kilometers 11, miles of dedicated lines alone, a length that exceeds rest of the world's high-speed rail tracks combined,  making it the longest HSR network in the world.
Since , the growth of rapid transit systems in Chinese cities has accelerated. There were approximately airports in with around planned by More than two-thirds of the airports under construction worldwide in were in China,  and Boeing expects that China's fleet of active commercial aircraft in China will grow from 1, in to 5, in In , Beijing's Capital Airport ranked second in the world by passenger traffic it was 26th in Water supply and sanitation infrastructure in China is facing challenges such as rapid urbanization, as well as water scarcity, contamination, and pollution.
The national census of recorded the population of the People's Republic of China as approximately 1,,, Although a middle-income country by Western standards, China's rapid growth has pulled hundreds of millions of its people out of poverty since In , the urban unemployment rate of China was about 4. Given concerns about population growth, China implemented a two-child limit during the s, and, in , began to advocate for an even stricter limit of one child per family.
Beginning in the mid s, however, given the unpopularity of the strict limits, China began to allow some major exemptions, particularly in rural areas, resulting in what was actually a "1. The next major loosening of the policy was enacted in December , allowing families to have two children if one parent is an only child.
According to one group of scholars, one-child limits had little effect on population growth  or the size of the total population. Their own counterfactual model of fertility decline without such restrictions implies that China averted more than million births between and , a number which may reach one billion by given all the lost descendants of births averted during the era of fertility restrictions, with one-child restrictions accounting for the great bulk of that reduction.
The policy, along with traditional preference for boys, may have contributed to an imbalance in the sex ratio at birth. China officially recognizes 56 distinct ethnic groups, the largest of which are the Han Chinese , who constitute about There are as many as living languages in China. Across northeastern and northwestern China , local ethnic groups speak Altaic languages including Manchu , Mongolian and several Turkic languages: Korean is spoken natively along the border with North Korea.
Sarikoli , the language of Tajiks in western Xinjiang , is an Indo-European language. Taiwanese aborigines , including a small population on the mainland, speak Austronesian languages.
Standard Mandarin , a variety of Mandarin based on the Beijing dialect , is the official national language of China and is used as a lingua franca in the country between people of different linguistic backgrounds. Chinese characters have been used as the written script for the Sinitic languages for thousands of years. They allow speakers of mutually unintelligible Chinese varieties to communicate with each other through writing. In , the government introduced simplified characters , which have supplanted the older traditional characters in mainland China.
Chinese characters are romanized using the Pinyin system. Tibetan uses an alphabet based on an Indic script. Uyghur is most commonly written in Persian alphabet based Uyghur Arabic alphabet.
The Mongolian script used in China and the Manchu script are both derived from the Old Uyghur alphabet. Zhuang uses both an official Latin alphabet script and a traditional Chinese character script.
China has urbanized significantly in recent decades. China has over cities with a population of over one million,  including the seven megacities cities with a population of over 10 million of Chongqing, Shanghai, Beijing, Guangzhou, Tianjin, Shenzhen, and Wuhan.
The large " floating populations " of migrant workers make conducting censuses in urban areas difficult;  the figures below include only long-term residents. Since , compulsory education in China comprises primary and junior secondary school , which together last for nine years. In , 27 percent of secondary school graduates are enrolled in higher education. In February , the government pledged to provide completely free nine-year education, including textbooks and fees.
In , around The National Health and Family Planning Commission , together with its counterparts in the local commissions, oversees the health needs of the Chinese population. At that time, the Communist Party started the Patriotic Health Campaign , which was aimed at improving sanitation and hygiene, as well as treating and preventing several diseases.
Diseases such as cholera , typhoid and scarlet fever , which were previously rife in China, were nearly eradicated by the campaign. After Deng Xiaoping began instituting economic reforms in , the health of the Chinese public improved rapidly because of better nutrition, although many of the free public health services provided in the countryside disappeared along with the People's Communes.
Healthcare in China became mostly privatized , and experienced a significant rise in quality. As of [update] , the average life expectancy at birth in China is 75 years,  and the infant mortality rate is 12 per thousand. The government of the People's Republic of China officially espouses state atheism ,  and has conducted antireligious campaigns to this end.
Over the millennia, Chinese civilization has been influenced by various religious movements. The " three teachings ", including Confucianism , Taoism , and Buddhism Chinese Buddhism , historically have a significant role in shaping Chinese culture,   enriching a theological and spiritual framework which harkens back to the early Shang and Zhou dynasty. China is home to many of the world's tallest religious statues , including the tallest of all, the Spring Temple Buddha in Henan.
Clear data on religious affiliation in China is difficult to gather due to varying definitions of "religion" and the unorganized, diffusive nature of Chinese religious traditions. Scholars note that in China there is no clear boundary between three teachings religions, Buddhism, Taoism and local folk religious practice.
Significant faiths specifically connected to certain ethnic groups include Tibetan Buddhism and the Islamic religion of the Hui , Uyghur , Kazakh , Kyrgyz and other peoples in Northwest China. Since ancient times, Chinese culture has been heavily influenced by Confucianism and conservative philosophies. For much of the country's dynastic era, opportunities for social advancement could be provided by high performance in the prestigious imperial examinations , which have their origins in the Han dynasty.
Chinese culture has long emphasized a sense of deep history and a largely inward-looking national perspective. The first leaders of the People's Republic of China were born into the traditional imperial order, but were influenced by the May Fourth Movement and reformist ideals.
They sought to change some traditional aspects of Chinese culture, such as rural land tenure, sexism , and the Confucian system of education, while preserving others, such as the family structure and culture of obedience to the state.
Some observers see the period following the establishment of the PRC in as a continuation of traditional Chinese dynastic history, while others claim that the Communist Party's rule has damaged the foundations of Chinese culture, especially through political movements such as the Cultural Revolution of the s, where many aspects of traditional culture were destroyed, having been denounced as "regressive and harmful" or "vestiges of feudalism ".
Many important aspects of traditional Chinese morals and culture, such as Confucianism, art, literature, and performing arts like Peking opera ,  were altered to conform to government policies and propaganda at the time. Access to foreign media remains heavily restricted. Today, the Chinese government has accepted numerous elements of traditional Chinese culture as being integral to Chinese society.
With the rise of Chinese nationalism and the end of the Cultural Revolution, various forms of traditional Chinese art, literature, music, film, fashion and architecture have seen a vigorous revival,   and folk and variety art in particular have sparked interest nationally and even worldwide.
Chinese literature is based on the literature of the Zhou dynasty. Li Bai and Du Fu opened the forking ways for the poetic circles through romanticism and realism respectively. In the wake of the New Culture Movement after the end of the Qing dynasty, Chinese literature embarked on a new era with written vernacular Chinese for ordinary citizens.
Hu Shih and Lu Xun were pioneers in modern literature. Mo Yan , a xungen literature author, was awarded the Nobel Prize in Literature in Chinese cuisine is highly diverse, drawing on several millennia of culinary history and geographical variety, in which the most influential are known as the "Eight Major Cuisines", including Sichuan , Cantonese , Jiangsu , Shandong , Fujian , Hunan , Anhui , and Zhejiang cuisines.
The diet of the common people in pre-modern times was largely grain and simple vegetables, with meat reserved for special occasions. And the bean products, such as tofu and soy milk , remain as a popular source of protein. Southern cuisine, due to the area's proximity to the ocean and milder climate, has a wide variety of seafood and vegetables; it differs in many respects from the wheat-based diets across dry northern China.
Numerous offshoots of Chinese food, such as Hong Kong cuisine and American Chinese food , have emerged in the nations that play host to the Chinese diaspora. China has become a prime sports destination worldwide. China has one of the oldest sporting cultures in the world. Physical fitness is widely emphasized in Chinese culture, with morning exercises such as qigong and t'ai chi ch'uan widely practiced,  and commercial gyms and private fitness clubs are gaining popularity across the country.
China has participated in the Olympic Games since , although it has only participated as the PRC since China hosted the Summer Olympics in Beijing, where its athletes received 51 gold medals — the highest number of gold medals of any participating nation that year.
Beijing and its nearby city Zhangjiakou of Hebei province will also collaboratively host the Olympic Winter Games , which will make Beijing the first city in the world to hold both the Summer Olympics and the Winter Olympics. Edit Read in another language China.
This article is about the People's Republic of China. For the Republic of China, see Taiwan. For other uses, see China disambiguation. For other uses, see PRC disambiguation. Area controlled by the People's Republic of China shown in dark green; claimed but uncontrolled regions shown in light green.
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Hong Kong and Macau use left-hand traffic except several parts of metro lines. The majority of the country's trains drive on the left. See List of countries and dependencies by area for more information. O Grande Reino da China Even those texts that did survive had to be painstakingly reconstructed from memory, luck, or forgery. Mei Ze 's "rediscovered" edition of the Book of Documents was only shown to be a forgery in the Qing dynasty. The area under Pakistani administration is claimed by India, while the area under Indian administration is claimed by Pakistan.
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As a currency appreciates, there is pressure to cover any debts in that currency by converting foreign assets into that currency.