Beijing lowered the yuan again yesterday after a shock devaluation on Tuesday, roiling markets across the world and deepening fears of even more weakening of the currency.
With a dramatic devaluation of the yuan yesterday, Beijing brought out the bazookas in a move that might escalate a regional currency war that it had until now chosen to avoid.
Offshore investors will be able to trade select contracts in China's onshore commodity futures markets with foreign currency or yuan from today, marking another milestone in the deregulation of the nation's capital markets and the globalisation of the currency.
Shanghai shares ended yesterday posting their strongest weekly gain since last month back when the benchmark index was headed for a seven-year high.
Hong Kong and mainland stocks ended another volatile session higher yesterday, but the gains risk overstating what analysts said were tentative bounces from some of the sharpest falls since the global financial crisis.
Hong Kong stocks saw one of their worst days in history yesterday, with the key index losing more than 2,000 points at one point, as the market reeled from panic sell-offs on the mainland and uncertainties over Greece.
Mainland Chinese stocks tumbled sharply on Wednesday as sell orders piled up in an increasingly fragile market where an unprecedented 51 per cent of all listed shares are now voluntarily suspended from trade, locking up some US$2.2 trillion of previously tradeable market capitalisation.
Mainland shares traded lower yesterday, raising the risk of wider economic fallout and testing Beijing's resolve to pull all available policy levers to stop the slide.
Hong Kong's benchmark Hang Seng Index had its sharpest one-day decline in three-and-a-half years yesterday, leading a wider slump in Asian markets as investors fretted over a Greek vote to reject an aid-for-reform package from its creditors that raised the risk of a euro currency break-up.
Mainland stocks tumbled again yesterday despite an interest rate cut at the weekend, while the Hong Kong market joined a global slide over growing concerns of Greece leaving the euro zone.
Three critical events the market expects to see happen over the next six to twelve months around yuan globalisation: MSCI inclusion, the Shenzhen-Shanghai stock connect, and the IMF SDR review
The Chinese currency's 2.18 per cent of global share is gradually moving closer to challenge Japanese yen, which accounted for 2.6 per cent in world's payments by value last month
The landmark scheme to allow Hong Kong and China fund managers to sell a combined 300 billion yuan of fund products to each other will kick off in a slow start in July as many technical details are still up in the air
World-beating A-share performance lures Chinese tech companies to offer generous premium to foreign investors to delist from the US and tap investors at home.
Hong Kong stocks bounced back in morning trading on Friday after two days of losses, buoyed by gains in US and mainland China shares on speculation that the Federal Reserve will stay put longer on interest rate rises and Beijing will further ease policies to prop up the economy.
Demand for Beijing's latest dim sum bond sale was red hot yesterday, with most notes sold at much lower-than-expected yields as investors in Hong Kong snapped up the government debt amid a limited supply of low-risk yuan assets.
The International Finance Corp, the World Bank's private-sector arm, is lobbying Chinese regulators to back its plan to issue yuan-denominated bonds in the onshore market.
Traders cheered by SAFE’s move to strive for yuan’s reserve status
Currency traders do not expect PBOC to resort to a weaker currency to revive economy
Traders realise selling of emerging market currencies may be overdone following worse-than-expected US trade deficit