Chinese investors may turn to Russian market amid escalating trade tensions with US
Challenging international conditions along with the unpredictability of relations with some Western countries are making China see the prospects and opportunities of Russian markets in a new light, according to Igor Marich, managing director of the Money and Derivatives Markets at the Moscow Exchange.
“We can see the potential, and we are confident that Chinese capital will come to the Russian market, and in the near future we are ready to clinch some deals. Our Chinese partners are also taking steps towards business opportunities in Russia,” the economist told journalists during the China session of the annual Moscow Exchange Forum in Beijing.
Chinese brokers who visited the Moscow conference – carried out in cooperation with the Shanghai Stock Exchange in September – reportedly said that the current trade war with Washington and challenges that they subsequently face are pushing them to take a closer look at Russia.
“I think it also opens up new opportunities for us,” Marich said.
The economist stressed that volume operations that involve the yuan and the ruble on the Russian stock exchange nearly doubled from January through October of the current year against the same period a year ago. The rise was reportedly triggered by growing trade between Russia and China.Also on rt.com Russia and China ditching dollar for national currencies payment system to avoid sanctions
“Trade turnover will definitely reach $100 billion this year despite devaluation and other negative factors,” Marich said.
The expert added that the share of the US dollar in global currency operations has been downgraded in recent years.
“The trend is especially evident in Russia, where the share of operations with other currencies is rising,” he said. “The volume of euro-ruble operations rose 25 percent to 51.4 trillion rubles.”
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