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.

The yuan is falling, but only because Beijing wants it to

The yuan is falling, but only because Beijing wants it to

It is hard to fathom quite why so many people have been surprised by the recent fall in the value of the yuan. Over the past couple of weeks, the mainland currency has fallen 1.3 per cent against the US dollar.

Monday, 3 March, 2014, 7:15am 1 comment

Fall in yuan can have upside, too as credit risk can be properly priced

The yuan policy over most of the last decade has reached its use-by date. Photo: Bloomberg

Beijing has served notice that speculation in the Chinese currency is no longer a one-way bet. The market is coming to terms with the fact that a sharp depreciation of the yuan in recent days, including the biggest intra-day fall since 2007 yesterday, is policy-driven ahead of an anticipated widening of the unit's daily trading range.

1 Mar 2014 - 5:55am

BOC Hong Kong fends off new competition in yuan trading

The Bank of China is recruiting more participating banks to boost its yuan business. Photo: Sam Tsang

Bank of China (Hong Kong), which is 66.06 per cent owned by Bank of China, is considering extending its operating hours to cater to demand from overseas customers, especially from the United States.

17 Feb 2014 - 5:43am

Canada steps up push to create yuan trading hub

Jim Flaherty

Canadian Finance Minister Jim Flaherty received a personal briefing on the matter last year from government officials before a meeting with HSBC executives, documents obtained under Canada's Access to Information Act showed.

8 Feb 2014 - 5:12am

Yuan overtakes euro to become second-most used finance currency

Yuan usage in trade finance grew to 8.66 per cent in October from 1.89 per cent in January last year.

Yuan usage in trade finance grew to 8.66 per cent in October from 1.89 per cent in January last year, according to the Society for Worldwide Interbank Financial Telecommunication (Swift).

4 Dec 2013 - 6:23am

Taiwan favoured centre for yuan bonds

Yuan deposits in Taiwan totalled 123.2 billion yuan in October. Photo: Reuters

More mainland firms, especially banks, are expected to pick Taiwan as their top destination for issuing offshore yuan bonds, with the island opening the door for the first time to mainland issuers last week.

2 Dec 2013 - 6:08am

Export woes may spur yuan rethink

Research shows mainland exports have been "losing steam, or even losing some ground", in the EU and the US. Photo: Bloomberg

Beijing may be about to begin a rethink of its currency policy in an effort to give the country's struggling exporters the flexibility they need to cope with a raft of painful economic reforms.

4 Nov 2013 - 12:23pm

Bank of China targets yuan markets in West

Au King Lun sees his team as 'quite unique' because they apply hedge fund tactics, unlike many rivals' passive managers. Photo: K. Y. Cheng

Bank of China's Hong Kong-based asset management arm is in talks with several European banks to distribute its yuan products in London and Paris, as it attempts to build an international customer base amid intensifying competition at home.

28 Oct 2013 - 6:17am 1 comment

Yuan slips in ranking as a world currency

The yuan lost ground to the Thai baht to rank as the 12th-biggest world currency in August.

Inbound and outbound yuan payments by entities outside of Hong Kong and the mainland fell to a four-month low in August, as fewer people chose to settle deals using the currency, especially in London and Singapore, according to financial clearing firm SWIFT.

9 Oct 2013 - 5:38am

Traders bullish on yuan prospects

The yuan, which has appreciated 1.8 per cent so far this year, is expected to end the year 0.3 per cent stronger at 6.10 against the US dollar in a survey of analysts. Photo: Reuters

Yuan forwards signal that traders are the most bullish on the currency in a year as the mainland economy shows signs of improvement and a US government shutdown weighs on the greenback.

9 Oct 2013 - 5:38am

Pearl River manufacturers brace for stronger yuan

John Mack, Util's Asia-Pacific chief executive

Italian car parts maker Util has seen the yuan appreciate considerably against the US dollar since it set up a factory in the Pearl River Delta six years ago.

30 Sep 2013 - 4:46pm

Yuan rise puts heat on Hong Kong dollar peg

The Hong Kong dollar has been pegged to the US dollar since October 1983. Photo: Bloomberg

With the rising use of the yuan in trade and investment, debate about the Hong Kong dollar's 30-year-old peg to the US dollar is intensifying.

30 Sep 2013 - 4:00am

Experts wary of roll-out for liberalisation

Illustration: Lau Ka-kuen

Market watchers remain sceptical about whether Beijing's targeted time frame for opening its capital accounts, a key step in the yuan's journey to global acceptance, is too soon.

30 Sep 2013 - 4:00am

Not just about currency appreciation anymore

Hong Kong's market for yuan investments is thriving, despite the fact that yuan currency appreciation has gone off the boil. Photo: Bloomberg

Most Hongkongers have experienced the yuan story in terms of their investments. Initially, this was in the form of stockpiling vast amounts of yuan on deposit at banks at a low interest rate.

23 Sep 2013 - 4:03am

Economists expect 5pc gain against greenback

The yuan is expected to appreciate 5 per cent against the US dollar by 2015. Photo: Reuters

The yuan is expected to appreciate 5 per cent against the US dollar by 2015, a more gradual pace than in recent years, amid a slowdown in mainland economic growth and financial reforms designed to allow more two-way fluctuations in the exchange rate, economists say.

23 Sep 2013 - 4:03am