On March 26th, 2018 China will release there first Yuan backed oil future on the Shanghai International Energy Exchange. This is one of their first initiatives to implement the grand One Belt One Road plan. China is in talks with Pakistan on a Yuan denominated currency-swap on crude oil. China’s president Xi Jinping’s plan to internationalize the Yuan will start with the oil market and accelerate into other commodities.
Professor Daly and myself will watch China’s oil future price closely in the next coming week, as it will set the tone of the Yuan’s presents in the international markets for the rest of the year. There is an increasing amount of coverage on China’s One Belt One Road initiative from United States banks who are looking at the plan as an illusive investment opportunity. The importance of the success of the oil future is imperative for China as it will finance economic investment in railroads and ports into Eurasian states.
Through the past month our research has led us to hypothesize the dethrone of the Dollar and the rise of the Yuan. 2018 will be a crucial year for the implementation of Yuan denominated commodity markets to finance any more Chinese infrastructural builds in surrounding countries. For the foreseeable future there will be decreased presents of the Dollar in international trades. The rise of the Yuan will solidify China as a economically stable powerhouse in the international community.
Professor Sean Daly and I have done research on multiple production and Industrial companies from across the Asian market which would benefit from the implementation of China’s One Belt One Road (OBOR) initiative. We are looking at the correlation between the companies to find if they have same pattern returns. If we can prove correlation between these companies it would lead to a benchmark to track and project future growth in China.
Currently, We are sorting through different international financial analyst reports on China’s largest environmental emissions protection company Lonking. The Company owns manufacturing plants in nine different cities in China and works directly with the Chinese Government in fund efforts for the initiative. Professor Daly has had trouble finding proprietary data on China’s bank loans, which has led to a missing piece in our research. He met with a machine-learning expert in the city to find out more information about China’s effort to mine and use crypto-currencies for funding. We need to find more data on how President Xi Jinping is funding the OBOR initiative and how it will affect the western world.
Professor Daly and I will be researching and analyzing China’s One Belt One Road (OBOR) initiative. OBOR aims to connect the Eurasian landmass and Africa with a vast logistics and transport network –employing roads, ports, rail, and pipelines, and transnational electric grids to spur modernization. In total, the OBOR nations account for one-third of global GDP and 60% of the world’s population.
We hope our research will lead to a paper for publication; perhaps a book. The OBOR initiative will become more of a topic of popular consumption as it reshapes Eurasia and Africa. Professor Daly plans to build a series of infographic databases via Tableau to help bring the research to the public.
I plan to achieve a better understanding of the economic impact OBOR will have on the emerging African and Eurasian markets in the future. I am gathering more information from primary source articles to learn as much as possible about one of the most important economic initiatives of the early 21st century.
We plan on learning how the initiative will shape eastern emerging countries; from cataloging important milestones and tracking 90 Billion dollars in loans currently extended to OBOR countries. By looking at China’s four biggest state owned banks we can look at what the loans will fund and analyze future projections for the project.