Net Asset Value Meaning In Chinese

Net Asset Value Meaning In Chinese – In recent years, Gian Maria Milesi-Ferretti, a senior at the Hutchins Center and Philip Lane, the European Central Bank’s chief economist, Has built a database of external financial assets and liabilities for over 200 years. Countries that existed until 1970 — foreign wealth. Now the Hutchins Center makes the entire dataset [Excel Download] widely available and updated. regularly A data analysis for September 2022 can be found here.

The EWN provides estimates of each country’s external financial assets and liabilities. These data also provide estimates of each country’s net international investment position (NIIP), the difference between all external financial assets and total external liabilities.

Net Asset Value Meaning In Chinese

Net Asset Value Meaning In Chinese

Financial liabilities are defined in a similar manner. (Except for foreign exchange reserves — any liability of the central bank to non-residents is classified as a liability appropriate to the nature of the liability). For example, if a US company owns a controlling interest in Irish company based in Ireland This is a US foreign asset. and Ireland’s foreign debt in the same way If an Irish person owns shares in a US company That is Irish foreign assets and US foreign liabilities.

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According to the pattern of balance of payments statistics External assets and liabilities are determined on the basis of:

For example, an American Bank branch in the UK is a UK resident. Whereas Canadian Bank branches in the US are US residents, so former US resident deposits are foreign assets. (and included in the EWN data), while the latter deposits are domestic assets. (and not included)

Overall global economic data allows us to gauge trends in international financial integration and global external imbalances. information by country

It provides a measure of how an economy’s financial relationship with the rest of the world. A country’s NIIP tells us it is a creditor or debtor to the rest of the world, which can affect the sustainability of external debt.

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No. The data will only measure financial claims and liability against non-residents. Therefore, it is only a net external component of a country’s wealth. In particular, such information does not include the wealth of residents of the country.

In fact, a country’s NIIP and all its wealth can move in opposite directions. For example, an increase in the price of a country’s stock will increase the value of its wealth. This is because the domestic company has more value. This increases the country’s financial debt for non-residents and worsens the NIIP.

Prior to the 2007-2008 global financial crisis, cross-border positions were rapidly expanding. This declined after 2007 (see Lane and Milesi-Ferretti, 2018). This slowdown reflects a weakening of capital inflows into developed countries and a decrease in the activity of major banks. and a return to the spread of the eurozone bond market after the 2010-2011 eurozone crisis[1]. It is also affected by the constituents: the share of developing countries and emerging economies in global GDP increases. greatly increased for these economies External assets and liabilities represent a smaller share of GDP than developed countries, reducing the total.

Net Asset Value Meaning In Chinese

While other forms of cross-border financing has shrunk since the global financial crisis. Global foreign direct investment has also increased as multinational companies expand their network of branches abroad. The expansion reflects some investment in Greenfield (i.e., new manufacturing plants instead of buying existing ones or creating pure financial entities), but the major source of expansion is the spread of megawatts. special purpose vehicles It is located in a financial hub designed for regulatory and tax reduction purposes. (For details, see Lane and Milesi-Ferretti, 2018, “The External Wealth of Nations Revisited: International Financial Integration in the Aftermath of the Global Financial Crisis,” IMF Economic Review 66, 189-222).

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The past decade has seen the expansion of creditor and receivable positions around the world as described here. in other words group of creditor regions (Some of the modern developed European countries advanced Asian countries major oil exporters and China) have accumulated additional foreign net assets and a group of receivable regions. (mainly the United States but also some Advanced European Countries), Developing Countries of Europe, Latin America and Emerging Asia) Additional Net External Liabilities

Take Canada, which has been a net receivable for the past 50 years, with a constant current account deficit from 1971-1998 since 1999 after the current account surplus. Net foreign debt fell to -9% of GDP by the end of 2008, with a favorable credit profile in FDI and portfolio equity. and a slightly higher net debt position in debt. (especially port debt as well as the attractiveness of Canadian sovereignty and bonds. for international entities) investors). Since 2009, Canada has again run its current account deficit. Totaling $567 billion (about 35 percent of 2020 GDP), the financing came primarily from net debt inflows. Moderate net inflows into portfolios and foreign direct investment.

Despite this existing debtor status and additional debt, IIP statistics show that by 2020, Canada has become a major net creditor. With a net asset position greater than 60 percent of GDP, how did this happen?

Canadian equity investors abroad are doing exceptionally well. Global stock prices in US dollars have increased 185% between 2008 and 2020, and this has helped boost valuations of Canadian portfolios and overseas FDI assets. Much less volatility This reflects poor performance in the energy and metals business: prices rose 80 percent in US dollars. As a result, Canada’s net credit profile in foreign direct investment and equities was close to 120 percent. of GDP (compared to approximately 23 percent of GDP at constant capital valuations). The attractiveness of the Canadian bond market has attracted security trends. And the net position in portfolio debt is now -50 percent of GDP[2].

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The main sources of information are the Balance of Payments (BOP) statistics and the International Investment Position (IIP) statistics of each country. Distributed by the International Monetary Fund The only conceptual difference is Our data excludes central bank gold holdings from financial assets. (because there are no claims in other countries)

EWN data extends both the time series and country coverage of IIP statistics to cover virtually every economy in the world since 1970, using information and alternative methods to fill in missing IIP data or where IIP estimates are. In terms of time series coverage, IIP data for India started in 1996, Brazil in 2001, and China in 2004, and in terms of country coverage, EWN’s database includes countries. Economies such as Kuwait, Qatar, United Arab Emirates, and many more, several offshore centers of the Caribbean (eg Bermuda, British Virgin Islands, and the Cayman Islands) not publishing IIP statistics, or publishing incomplete versions. (with the exception of Kuwait’s main sovereign wealth fund and most of Bermuda’s offshore sector and the Cayman Islands of the United States)

These incremental statistics are based on a variety of sources. including bilateral information of partner countries (for countries that do not or only publish external asset and liability assessments) from the IMF Direct Investment Survey and the IMF Coordinated Portfolio Investment Survey, an incomplete version); Cumulative current with valuation improvement World Bank and International Monetary Fund Statistics on Foreign Debt UNCTAD Statistics on Foreign Direct Investment and various national sources Useful information on historical data is also available in Stefan Sinn’s book (“The Net Foreign Asset Positions of 145 Countries” Kieler Studien No. 224, Institut für Weltwirtschaft an der Universität Kiel, Tübingen: J. C. B. Mohr).

Net Asset Value Meaning In Chinese

Also refer to this link: Lane, Philip R. and Gian Maria Milesi-Ferretti, 2018, “The External Wealth of Nations Revisited: International Financial Integration after the Global Financial Crisis,” IMF Economic Review 66, 189-222.

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[1] Most of the bank’s cross-border activities are included in the category of “Other investments”, including loans and deposits

[2] Exchange rate changes are also important. Most of Canada’s debt is in the domestic currency. And most of the company’s assets are in foreign currency. Therefore, the Canadian dollar’s depreciation against the US dollar is likely to improve Canada’s external position by increasing the domestic currency value of Canadian assets offshore at the end. In 2020, the Canadian dollar is down 5% against the US dollar at the end of 2008.

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