Yuan

The Chinese yuan, also known as the renminbi, is already convertible under the current account - the broadest measure of trade in goods and services. However, the capital account, which covers portfolio investment and borrowing, is still closely managed by Beijing because of worries about abrupt capital flows.

ADB calls for more flexible yuan as China’s growth tipped to slow

Chinese yuan notes and coins in the capital of Beijing. Photo: EPA

The Asian Development Bank urged Beijing to make the yuan more flexible while forecasting China’s economic growth would slow only moderately to 7.2 per cent this year thanks to lower oil prices, improved external demand, and domestic structural reforms.

Tuesday, 24 March, 2015, 3:00pm

China International Payment System (CIPS) said ready; may be launched September or October

Chinese yuan are counted in a bank. An internatinal payment system is said ready for launch toward the end of 2015. Photo: Bloomberg

China’s long-awaited international payment system to process cross-border yuan transactions is ready, and may be launched as early as September or October, three sources with direct knowledge of the matter told Reuters.

9 Mar 2015 - 9:26pm

Capital flight in mainland China could spark currency collateral damage

Real rates on the mainland have drifted higher, due in large part to low and falling inflation. Photo: Bloomberg

The tide of capital is going out in China and many boats, in Chinese ports or not, will settle lower in the water in consequence.

The mainland, somewhat unexpectedly, cut monetary policy yet again over the weekend, the third time in recent months it has moved to ease conditions.

4 Mar 2015 - 11:07pm

Taiwan now hottest place to raise renminbi for international issuers

Renminbi deposits in Taiwan totalled more than 310 billion yuan as of January. Photo: Reuters

Taiwan has become the hottest place for international issuers to raise renminbi this year, while yuan bond issuances in Hong Kong has slumped as costs hover at a record high.

3 Mar 2015 - 2:54pm

Beijing's 'new normal' currency policy does not imply a weaker yuan

The yuan's mild appreciation trend should remain intact in the medium term, supported by an external surplus. Photo: Bloomberg

The People's Bank of China has been intervening less in the foreign-exchange market since it moved to squash speculators making the so-called one-way bet trade on yuan appreciation early last year.

The currency has been in a "new normal" paradigm since, in which two-way trading and currency volatility have finally become a reality.

9 Feb 2015 - 8:56pm

China’s yuan now the world’s 5th biggest payment currency - SWIFT

A 100-yuan note bearing the picture of Mao Zedong is seen. The yuan is now the world's 5th biggest payment currency. Photo: Simon Song

The Chinese yuan beat the Canadian and Australian dollar to rank as the world’s fifth biggest payment currency since November, but its global market share remain small compared with the US dollar.

29 Jan 2015 - 8:55am

China facing capital outflow pressures - SAFE

Yuan bank notes in a cashbox in Beijing. The State Administration of Foreign Exchange said the country is facing capital outflows at a time of rising volatility in the markets. Photo: Reuters

 

China faced pressures from capital outflows in recent months at a time of rising cross-border volatilities, a senior official at the State Administration of Foreign Exchange (SAFE) said.

22 Jan 2015 - 2:29pm 1 comment

Stanchart revises down forecast for yuan’s value versus dollar in 2015

Chinese yuan bank notes in Beijing. Standard Chartered Bank revised downwards its forecast of the value of the yuan against the US dollar in 2015. Photo: Reuters

Standard Chartered has sharply revised down its forecast on the Chinese yuan’s value against the US dollar in 2015, on speculation Beijing may be reluctant to allow its currency to continue strengthening amid subdued regional trade.

12 Jan 2015 - 4:02pm

Why the yuan is on the rise in Seoul

Why yuan gets big boost from Korea deal on global platform

China's move to develop financial infrastructure for trading the yuan in South Korea is a key step in facilitating the currency's internationalisation.

31 Dec 2014 - 7:13am

Cross-border schemes key to China easing capital controls

More cross-border trading schemes including stocks may boost fund flows and lead Beijing to further relax capital controls. Photo: Reuters

A hoped-for expansion in the number of cross-border trading schemes with the mainland is likely to serve as the springboard for a further easing in capital controls by Beijing next year.

29 Dec 2014 - 7:08am

Slow start for Shanghai-Hong Kong Stock Connect is no indicator of its true potential

The stock link-up represents the most unfettered access yet to Chinese assets for global investors. Photo: Reuters

The recent link-up between the stock exchanges of Shanghai and Hong Kong marks another milestone in China's drive to reintegrate with the international financial system.

15 Dec 2014 - 6:43am

Yuan may have shot at getting global reserve currency status

Yuan may have shot at getting global reserve currency status

For the first time, China has a real shot at getting the IMF to endorse the yuan as a global reserve currency alongside the US dollar and euro.

12 Dec 2014 - 7:02am

Yuan bears shun PBOC signal amid rate cut

The yuan recorded the second-biggest jump in volatility in Asia since November 21, when the PBOC cut its one-year lending rate. Photo: EPA

Efforts by the People's Bank of China to signal it will let the yuan strengthen even as it grapples with a slowing economy on the mainland are being lost on currency strategists.

4 Dec 2014 - 4:41am

South Korea launches yuan-won market in Seoul

South Korea's Finance Minister Choi Kyung-hwan speaks at the opening ceremony of the Won-yuan market in Seoul yesterday. Photo: Xinhua

Direct trading between the Chinese and South Korean currencies began, with traders and government officials in Seoul saying transactions were more active than expected.

2 Dec 2014 - 12:17pm

Hong Kong must prepare itself for the age of the renminbi

Hong Kong can focus on areas where other offshore centres may not enjoy the same degree of access.

The launch of the Shanghai-Hong Kong Stock Connect pilot programme is another important step in the renminbi's journey to internationalisation.

28 Nov 2014 - 8:01am 2 comments

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