Article 17 In case capital actually paid by the investors exceeds the registered capital (including stock premiums), an enterprise shall manage the surplus as capital reserve.

The asset losses checked in the reorganization of the enterprise shall, upon approval, be offset with the undistributed profits, surplus reserve, capital reserve and paid in capital in turn.

(1) as for those occurred in the reorganization of the enterprise, they shall be paid off in the undistributed profits, surplus reserves, capital reserves and paid in capital in turn or

So why, if China was still running a decent current account surplus and a long term capital surplus, did the RMB suddenly depreciate, forcing the PBoC to intervene (though not very vigorously) to prevent it from falling further?

In case surplus reserves are used for increasing capital, making up losses or distributing dividends, it is required to give the related resolution or basis.

Article 19 In case an enterprise enhances the paid in capital or converts the reversed capital or surplus reserves into paid in capital, the investors shall go through the related financial items and industrial and commercial registration of alteration after fulfilling the financial decision making procedures.

The US does not just pluck surplus foreign savings out of thin air. To attract the capital it needs, America must send dollars overseas through foreign trade.

(a) Credits to Member States resulting from transfers made in 1959 and 1960 from the surplus account to the Working Capital Fund in an adjusted amount of 1,025,092 dollars

(a) Credits to Member States resulting from transfers made in 1959 and 1960 from the surplus account to the Working Capital Fund in an adjusted amount of 1,025,092 dollars

(a) Credits to Member States resulting from transfers made in 1959 and 1960 from the surplus account to the Working Capital Fund in an adjusted amount of 1,025,092 dollars

(h) Surplus

If institutions are reformed and the region made more receptive to intraregional capital and labour flows, investment rates will increase, economic growth will accelerate and some surplus labour will be absorbed.

With the global economy recovering, China s trade surplus began to grow. Moreover, capital inflows increased significantly, owing to real investment opportunities in the high growth economy and the expectation of renminbi revaluation.

India ran a current account surplus while the Romans complained about the loss of gold, yet the system endured. Similarly, the first Bretton Woods system was sustained with European capital, and Bretton Woods 2 was fueled by Asian capital, with the US providing the deficits in both cases.

Lacking in saving and wanting to grow, America must import surplus savings from abroad. And to attract that foreign capital, it has no choice but to run equally large balance of payments deficits.

China s Shrinking Trade Surplus

China has run a capital account surplus for most of the last 30 years, and a trade surplus every year since 1993. The PBOC keeps the exchange rate stable by intervening heavily in the foreign exchange market, creating so much liquidity that the authorities must engage in massive sterilization to avoid overshooting the targeted increase in the monetary base.

But China s 3.2 trillion problem will become a 20 trillion renminbi problem if China cannot reduce its current account surplus and fence off capital inflows. There is no escape from the need for domestic structural adjustment.

I call it cognitive surplus.

But whether renminbi appreciation will work depends on reducing China s net capital inflows and current account surplus. International experience suggests that, in the short run, more capital flows into a country when its currency appreciates, and most empirical studies have shown that gradual appreciation has only a limited effect on countries current account positions.

(p) Surplus due to Member States

As long as China was running a trade surplus and receiving net inflows of foreign direct investment, the RMB remained under upward pressure. Short term capital flows had little impact on the direction of the RMB s exchange rate.

That's the second half of cognitive surplus.

Both of these rely on cognitive surplus.

(b) Surplus deficit position of the fund

Saudi Arabia also has a bilateral and multilateral surplus Americans want its oil, and Saudis want fewer US products. Even in absolute value, Saudi Arabia s multilateral merchandise surplus of 212 billion in 2008 dwarfs China s 175 billion surplus as a percentage of GDP, Saudi Arabia s current account surplus, at 11.5 of GDP, is more than twice that of China.

Cognitive surplus is made up of two things.

Europe almost doubled its surplus in 2000 2003.

Monetary policy has been prudent, and the threat of inflation has now been lessened by the decline in commodity and oil prices. The international balance of payments remains in surplus, and there is still a net capital inflow despite the global credit crunch.

But not many countries are experiencing the same level of difficulties surveys consistently show that only about 10 of Chinese SMEs finance comes from banks, while the global average doubles. Moreover, none of these countries has a capital surplus of China s magnitude.

Clay Shirky How cognitive surplus will change the world

Furthermore, East Asia s growth model has been sustained ultimately by mobilizing rising domestic savings and pumping out exports. So, although India might initially absorb some international capital, it might ultimately prefer to build foreign reserves by running small external deficits or even a surplus.

However, China s large size and low per capita income and capital stock imply continued rapid growth in its demand for commodities. Thanks to supply constraints, China s import bill for commodities and metals is likely to offset its processing trade surplus in the near future.

The key is to reflect on six kinds of capital goods business capital, infrastructure, human capital, intellectual capital, natural capital, and social capital. All of these are productive, but each has a distinctive role.

Americans spend too much and save too little, leaving a 250 billion trade deficit financed by other countries. Much of this credit comes from China, where firms and citizens save too much and consume too little, leaving a surplus of both goods and capital that flows abroad.

Astonishingly, many interpret Germany s export boom and current account surplus, which measures these capital exports, as an indicator of the strength of Germany as an investment location. But, according to the Bundesbank, net investment abroad (including financial investment) has already roughly matched domestic investment in recent years.

Our surplus has swelled by nearly ten percent in this quarter.

Problems arising from the accumulation of conventional ammunition stockpiles in surplus

2. Notes that the Committee of Actuaries expressed the view that, based on the continuation of the surplus, a portion of the surplus disclosed in 2005 could be made available at the present time to improve benefits, but that prudence would dictate that most of the surplus should be retained

Yet the US found a way to finesse this problem. Exploiting what 160 Valéry Giscard d Estaing called the exorbitant privilege of the world s reserve currency, the US borrowed surplus savings from abroad on very attractive terms, running massive balance of payments, or current account, deficits to attract foreign capital.

Yet the US found a way to finesse this problem. Exploiting what Valéry Giscard d Estaing called the exorbitant privilege of the world s reserve currency, the US borrowed surplus savings from abroad on very attractive terms, running massive balance of payments, or current account, deficits to attract foreign capital.

In the end, it is the crippled financial system that is driving the wedge between China s large surplus of capital and formal financing for the country s SMEs. Indeed, in some parts of southern China, the informal financial sector is growing to match the size of the formal financial sector.

China breaks Crowther s mold. Given that it has been running an investment income deficit, a trade surplus, and current account surplus, it seems that it should be classified as a debtor repayer.

What matters here isn't technical capital, it's social capital.

And when they produce their crops, they sell the surplus on marketplaces.