https://www.scmp.com/rss/308644/feed The People’s Bank of China (PBOC) is the central bank of mainland China. It is responsible for carrying out monetary policy and regulation of financial institutions, including setting interest rates. en https://assets.i-scmp.com/static/img/icons/scmp-meta-1200x630.png https://www.scmp.com Carol Yang Carol Yang China’s central bank named the continued stability of the country’s capital markets as a priority for 2026, a goal taking on greater significance as global markets are tested by the reverberations of the escalating US-Israel war on Iran. The People’s Bank of China designated the stability of stock, bond and foreign exchange markets as one of its “major tasks” for the year, according to a readout from a high-level meeting hosted by bank governor Pan Gongsheng on Wednesday. The bank also vowed to... https://www.scmp.com/economy/china-economy/article/3347187/chinas-central-bank-pledges-stability-capital-markets-amid-global-sell?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3347187/chinas-central-bank-pledges-stability-capital-markets-amid-global-sell?utm_source=rss_feed Thu, 19 Mar 2026 13:30:09 +0000 Carol Yang Carol Yang China’s central bank has called for heightened cybersecurity awareness and caution in the use of artificial intelligence in the financial sector, adding to a chorus of warnings over security risks amid the nationwide buzz surrounding the OpenClaw AI agent. At its annual technology conference in Beijing on Wednesday, the People’s Bank of China called for further efforts to “enhance the resilience of cybersecurity and data security”, according to a readout of the meeting posted on its website. The... https://www.scmp.com/tech/tech-trends/article/3346352/amid-openclaw-frenzy-chinas-central-bank-adds-cybersecurity-warnings?utm_source=rss_feed https://www.scmp.com/tech/tech-trends/article/3346352/amid-openclaw-frenzy-chinas-central-bank-adds-cybersecurity-warnings?utm_source=rss_feed Thu, 12 Mar 2026 10:00:15 +0000 Daniel Ren Daniel Ren Beijing is encouraging equity investors to pursue representative action against unscrupulous listed or delisted firms in an apparent effort to bolster confidence in the country’s stock markets, as trading resumed on Tuesday following a 10-day break. The Supreme People’s Court, mainland China’s highest judicial organ, also announced at a press conference that it would issue more edicts on civil compensation for insider trading and market manipulation to better safeguard retail investors’... https://www.scmp.com/business/markets/article/3344453/chinas-top-court-backs-legal-action-against-corrupt-firms-amid-equity-markets-rally?utm_source=rss_feed https://www.scmp.com/business/markets/article/3344453/chinas-top-court-backs-legal-action-against-corrupt-firms-amid-equity-markets-rally?utm_source=rss_feed Tue, 24 Feb 2026 10:00:20 +0000 Carol Yang Carol Yang China has expanded its list of domestic systemically important banks (D-SIBs) – institutions subject to tighter regulatory standards – as authorities step up macroprudential oversight to safeguard financial stability amid high exposure to property sector debt. China Zheshang Bank, a joint-stock lender in east China’s Zhejiang province with total assets of 3.35 trillion yuan (US$485 billion), was added to the list released on Friday by the People’s Bank of China and the National Financial... https://www.scmp.com/economy/china-economy/article/3343580/china-expands-oversight-major-banks-amid-property-sector-risks?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3343580/china-expands-oversight-major-banks-amid-property-sector-risks?utm_source=rss_feed Sun, 15 Feb 2026 09:00:08 +0000 Neil Denslow Neil Denslow President Xi Jinping has called for China’s yuan to become a global reserve currency, underscoring ambitions to carve out a greater role for it in world finance. The country needed a “powerful currency” that could be “widely used in international trade, investment and foreign exchange markets, and attain reserve currency status”, Xi said in a commentary published on Saturday in Qiushi, the Communist Party’s ideology journal. The comments were first made in a 2024 speech to officials. Xi spoke of... https://www.scmp.com/plus/economy/china-economy/article/3342099/xi-wants-yuans-global-punch-match-chinese-economic-might?utm_source=rss_feed https://www.scmp.com/plus/economy/china-economy/article/3342099/xi-wants-yuans-global-punch-match-chinese-economic-might?utm_source=rss_feed Mon, 02 Feb 2026 09:00:11 +0000 Aileen Chuang Aileen Chuang China’s yuan is gaining traction as a go-to fundraising currency for companies expanding overseas, bolstered by favourable conditions, including a larger central-bank quota that offers cheaper, stable funding in Hong Kong, according to market participants. The mainland currency’s renewed momentum comes amid its recent appreciation, a broader shift away from US assets and the decision by Beijing and Hong Kong authorities to double the RMB Business Facility (RBF) to 200 billion yuan (US$28.8... https://www.scmp.com/business/banking-finance/article/3341981/yuan-finds-footing-corporate-finance-bolstering-beijings-internationalisation-push?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3341981/yuan-finds-footing-corporate-finance-bolstering-beijings-internationalisation-push?utm_source=rss_feed Sun, 01 Feb 2026 09:00:09 +0000 Reuters Reuters China’s factory activity faltered in January as weak domestic demand dragged down production at the start of the new ‍year, an official survey showed on Saturday. The official purchasing managers’ index (PMI) dropped to 49.3 in January, from 50.1 in December, below the 50-mark separating growth from contraction. It missed a forecast of 50 in a Reuters poll of analysts. Sub-indexes of new orders and new export orders also saw declines, respectively, down to 49.2 from 50.8 ⁠in December and 47.8... https://www.scmp.com/business/china-business/article/3341925/chinas-factory-activity-contracts-january-weak-domestic-demand?utm_source=rss_feed https://www.scmp.com/business/china-business/article/3341925/chinas-factory-activity-contracts-january-weak-domestic-demand?utm_source=rss_feed Sat, 31 Jan 2026 05:07:19 +0000 Enoch Yiu Enoch Yiu China’s central bank will support Hong Kong’s monetary authority to double the amount of yuan liquidity available to local banks, helping them increase yuan lending and enhancing the city’s role as an international offshore centre for the mainland currency. People’s Bank of China (PBOC) deputy governor Zou Lan said at the Asian Financial Forum (AFF) in Hong Kong on Monday that the central bank would provide more funding to allow the Hong Kong Monetary Authority (HKMA) to double the yuan... https://www.scmp.com/business/article/3341220/chinas-central-bank-support-hkma-doubling-yuan-liquidity-hong-kong-lenders?utm_source=rss_feed https://www.scmp.com/business/article/3341220/chinas-central-bank-support-hkma-doubling-yuan-liquidity-hong-kong-lenders?utm_source=rss_feed Mon, 26 Jan 2026 05:18:24 +0000 Ji Siqi,Sylvia Ma Ji Siqi,Sylvia Ma China’s central bank is looking to pump 900 billion yuan (US$129.2 billion) worth of additional funds into private and technology firms, alongside slashing key policy relending rates by a quarter of a percentage point, in a fresh round of monetary easing designed to shore up the economy. The new plan includes an extra 500 billion yuan for agriculture and small businesses, said Zou Lan, a deputy governor of the bank, at a press conference in Beijing on Thursday. The bank will also expand its... https://www.scmp.com/economy/china-economy/article/3339992/china-cut-key-policy-lending-rates?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3339992/china-cut-key-policy-lending-rates?utm_source=rss_feed Thu, 15 Jan 2026 07:17:43 +0000 Sylvia Ma Sylvia Ma China’s central bank strengthened the yuan’s daily fixing for a third consecutive session to a nearly 16-month high, as the currency also held firm in offshore markets despite recent US dollar strength. On Tuesday, the People’s Bank of China set the yuan’s midpoint rate, also known as the daily fixing rate, at 7.0103 to the US dollar – the strongest showing since the end of September 2024, when the rate was set at 7.0074. That official midpoint rate, however, was still weaker than that of the... https://www.scmp.com/economy/china-economy/article/3339699/chinas-central-bank-sets-onshore-yuan-fixing-strongest-point-nearly-16-months?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3339699/chinas-central-bank-sets-onshore-yuan-fixing-strongest-point-nearly-16-months?utm_source=rss_feed Tue, 13 Jan 2026 06:00:15 +0000 Raymond Ma,Neil Denslow Raymond Ma,Neil Denslow Chinese inflation rose to the highest in almost three years as rising food costs masked ongoing deflationary pressures in other corners of the economy. The consumer price index climbed 0.8 per cent from a year earlier in December, the biggest gain since February 2023, according to the National Bureau of Statistics. Food costs jumped 1.1 per cent, spurred by fresh vegetables, while transport fell 2.6 per cent amid lower car prices and a slump in fuel costs. Factory-gate prices dropped for the... https://www.scmp.com/plus/article/3339311/china-prices-pick-venezuela-raid-fallout-carney-visit?utm_source=rss_feed https://www.scmp.com/plus/article/3339311/china-prices-pick-venezuela-raid-fallout-carney-visit?utm_source=rss_feed Fri, 09 Jan 2026 09:00:21 +0000 Sylvia Ma Sylvia Ma China’s central bank has reiterated its commitment to a “moderately loose” policy stance in 2026, pledging stronger countercyclical and cross-cycle adjustments and signalling flexible and efficient use of reserve requirement ratio (RRR) cuts and interest rate reductions to support a strong start to the 15th five-year plan. At a work conference outlining priorities for the coming year, the People’s Bank of China also highlighted goals including a reasonable recovery in prices, mitigating... https://www.scmp.com/economy/china-economy/article/3339018/chinas-central-bank-signals-reserve-ratio-interest-rate-cuts-2026?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3339018/chinas-central-bank-signals-reserve-ratio-interest-rate-cuts-2026?utm_source=rss_feed Wed, 07 Jan 2026 08:30:27 +0000 Coco Feng Coco Feng The United Arab Emirates (UAE) is rapidly cementing its position as a global leader in the digital asset sector on the back of its regulatory infrastructure and the institutional adoption of cryptocurrencies, according to industry insiders at the fourth edition of Abu Dhabi Finance Week (ADFW). Speaking at ADFW, the largest financial and investment gathering in the Middle East and North Africa, Binance co-CEO Richard Teng said the UAE had been at the industry’s forefront, as capital city Abu... https://www.scmp.com/tech/blockchain/article/3336083/coins-sand-how-uae-draws-global-crypto-community?utm_source=rss_feed https://www.scmp.com/tech/blockchain/article/3336083/coins-sand-how-uae-draws-global-crypto-community?utm_source=rss_feed Fri, 12 Dec 2025 01:00:25 +0000 Frank Chen Frank Chen Huang Yiping is the dean of Peking University’s National School of Development and a member of the Monetary Policy Committee of the People’s Bank of China, the country’s central bank. He also sits on the Hong Kong stock exchange’s Mainland China Advisory Group. In his second Open Questions interview, Huang shares his thoughts on the need for caution in adopting new technologies like stablecoins and artificial intelligence, China’s next five-year plan and whether its tariff ceasefire with the... https://www.scmp.com/plus/article/3335170/ai-and-stablecoins-risks-and-rewards-china-huang-yiping-sees-them?utm_source=rss_feed https://www.scmp.com/plus/article/3335170/ai-and-stablecoins-risks-and-rewards-china-huang-yiping-sees-them?utm_source=rss_feed Thu, 04 Dec 2025 07:20:08 +0000 Brian Rhoads,Neil Denslow Brian Rhoads,Neil Denslow Hong Kong crypto stocks have slumped this week, hit by a renewed crackdown by China’s central bank on cryptocurrency trading and a broader global slump in digital assets. Yunfeng Financial Group tumbled 14 per cent in two days and Bright Smart Securities fell 5.7 per cent. Digital-asset platform operator OSL Group dropped as much as 9 per cent before rebounding. Jack Ma, founder of South China Morning Post owner Alibaba, is a backer of Yunfeng. Ant Group, an affiliate of Alibaba, is buying... https://www.scmp.com/plus/article/3334891/chinas-crypto-aversion-dampens-hong-kong-stablecoin-push?utm_source=rss_feed https://www.scmp.com/plus/article/3334891/chinas-crypto-aversion-dampens-hong-kong-stablecoin-push?utm_source=rss_feed Tue, 02 Dec 2025 09:04:06 +0000 Xinmei Shen Xinmei Shen Beijing’s explicit denunciation of stablecoins as a financial risk has cast fresh doubt on Hong Kong’s ambitions to become a regulated hub for the asset class, according to legal experts and analysts. The People’s Bank of China (PBOC) – together with the public security ministry, the cyberspace administration, the top court and other key financial regulators – said in a statement on Saturday that stablecoins did not meet the mainland’s requirements on customer identification and... https://www.scmp.com/tech/article/3334767/beijings-crypto-warning-casts-shadow-over-hong-kongs-stablecoin-ambitions?utm_source=rss_feed https://www.scmp.com/tech/article/3334767/beijings-crypto-warning-casts-shadow-over-hong-kongs-stablecoin-ambitions?utm_source=rss_feed Mon, 01 Dec 2025 10:30:18 +0000 Xinyi Wu Xinyi Wu Beijing has reaffirmed its tough stance on virtual currencies, warning of a resurgence in speculative trading and vowing to stamp out “illegal activities” involving stablecoins. The People’s Bank of China (PBOC) held a coordination meeting on virtual currency regulation on Friday with a coalition of top regulatory and law enforcement agencies, according to a statement released by the central bank on Saturday. “Business activities related to virtual currencies constitute illegal financial... https://www.scmp.com/economy/china-economy/article/3334675/chinas-central-bank-vows-stamp-out-illegal-activities-trading-stablecoins?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3334675/chinas-central-bank-vows-stamp-out-illegal-activities-trading-stablecoins?utm_source=rss_feed Sun, 30 Nov 2025 11:52:51 +0000 Junjie Wang Junjie Wang – https://www.scmp.com/plus/article/3334447/gold-fever-china?utm_source=rss_feed https://www.scmp.com/plus/article/3334447/gold-fever-china?utm_source=rss_feed Fri, 28 Nov 2025 03:07:48 +0000 Sylvia Ma,Frank Chen Sylvia Ma,Frank Chen China slightly increased its US Treasury holdings in August and September – though the uptick did little to offset an overall downward trend – as persistent worries over US debt sustainability and the Federal Reserve’s independence deepened doubts about the safety of assets backed by the US dollar. The country’s stockpile rose to US$701 billion in August, up from July’s multi-year low of US$696.9 billion, but it again trimmed the total to US$700.5 billion in September, according to data from the... https://www.scmp.com/economy/china-economy/article/3333405/chinas-us-treasury-holdings-edge-long-term-sell-continues?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3333405/chinas-us-treasury-holdings-edge-long-term-sell-continues?utm_source=rss_feed Wed, 19 Nov 2025 13:00:10 +0000 Carol Yang Carol Yang China’s central bank vowed to maintain an accommodative monetary policy stance and improve policy transmission to support the “steady” economy in its latest quarterly report, which analysts said signalled a reduced urgency for rate cuts. The People’s Bank of China will implement a “moderately loose” monetary policy and ensure “reasonable and ample” liquidity to serve the real economy, according to the report released on Tuesday. Despite facing domestic and external challenges, the Chinese... https://www.scmp.com/economy/china-economy/article/3332493/chinas-central-bank-projects-confidence-are-rate-cuts-back-burner?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3332493/chinas-central-bank-projects-confidence-are-rate-cuts-back-burner?utm_source=rss_feed Wed, 12 Nov 2025 10:00:57 +0000 Kandy Wong Kandy Wong The International Air Transport Association (IATA) will add the yuan to the settlement currencies available to airlines and aviation suppliers through the industry association’s clearing house, a move bolstering China’s efforts to promote the internationalisation of its currency. Yuan settlements will be available from next month following the completion of a trial period, the association said in a statement issued on Wednesday, with domestic carriers China Southern Airlines and Xiamen Airlines... https://www.scmp.com/economy/china-economy/article/3331728/yuan-internationalisation-efforts-uplifted-airlines-add-currency-settlement-options?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3331728/yuan-internationalisation-efforts-uplifted-airlines-add-currency-settlement-options?utm_source=rss_feed Thu, 06 Nov 2025 07:30:09 +0000 Xinyi Wu Xinyi Wu China on Monday reaffirmed its hardline approach towards virtual currencies at home, warning of the risks of stablecoins, despite growing concerns that the United States might have consolidated its US dollar dominance through them. Instead, the world’s second largest economy vowed to broaden the use of its central bank digital currency known as e-CNY, according to Pan Gongsheng, governor of the People’s Bank of China. “[Stablecoins] are still in their early stages of development,” said Pan,... https://www.scmp.com/economy/global-economy/article/3330525/china-doubles-down-crypto-crackdown-central-bank-vows-expand-digital-yuan?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3330525/china-doubles-down-crypto-crackdown-central-bank-vows-expand-digital-yuan?utm_source=rss_feed Mon, 27 Oct 2025 15:36:10 +0000 Ji Siqi Ji Siqi China’s central government should borrow more to lift domestic demand through supportive monetary and fiscal policy, a Chinese economist has urged. “If I can make a recommendation, what I think we could also do is to put together a more aggressive macroeconomic policy using central government leverage or adding central government leverage,” said Huang Yiping, a professor at Peking University and dean of its National School of Development, at the Bund Summit in Shanghai on Saturday. The potential... https://www.scmp.com/economy/policy/article/3330430/china-should-step-borrowing-boost-domestic-demand-economist-says?utm_source=rss_feed https://www.scmp.com/economy/policy/article/3330430/china-should-step-borrowing-boost-domestic-demand-economist-says?utm_source=rss_feed Mon, 27 Oct 2025 07:00:13 +0000 Frank Tang Frank Tang China is in talks with Japan and South Korea – both US allies – about a possible trilateral currency swap to bolster the region’s financial safety net and deepen economic cooperation amid US President Donald Trump’s trade war, according to a source familiar with the issue. Pan Gongsheng, governor of the People’s Bank of China (PBOC), touched on the issue with his South Korean and Japanese counterparts, Rhee Chang-yong and Kazuo Ueda, on the sidelines of the IMF-World Bank annual meetings in... https://www.scmp.com/news/china/money-wealth/article/3329849/china-eyes-3-way-currency-swap-japan-and-south-korea-amid-trumps-tariff-war-source?utm_source=rss_feed https://www.scmp.com/news/china/money-wealth/article/3329849/china-eyes-3-way-currency-swap-japan-and-south-korea-amid-trumps-tariff-war-source?utm_source=rss_feed Tue, 21 Oct 2025 16:23:46 +0000 Sylvia Ma Sylvia Ma China’s central bank has set the yuan’s daily reference rate against the US dollar at the strongest level in a year, as expectations grow that the US Federal Reserve will cut rates again this month. On Thursday, the People’s Bank of China (PBOC) set the yuan’s midpoint rate – also known as the daily fixing rate – at 7.0968 per US dollar, its strongest since October last year. Two days earlier, US Federal Reserve Chairman Jerome Powell said that America’s labour market and inflation outlooks were... https://www.scmp.com/economy/china-economy/article/3329206/chinas-central-bank-sets-daily-yuan-rate-against-us-dollar-strongest-level-year?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3329206/chinas-central-bank-sets-daily-yuan-rate-against-us-dollar-strongest-level-year?utm_source=rss_feed Thu, 16 Oct 2025 05:06:29 +0000 Haining Gao Haining Gao – https://www.scmp.com/plus/article/3328460/china-sells-us-treasuries-buys-gold?utm_source=rss_feed https://www.scmp.com/plus/article/3328460/china-sells-us-treasuries-buys-gold?utm_source=rss_feed Fri, 10 Oct 2025 03:49:28 +0000 Sylvia Ma Sylvia Ma Even after a record-setting run, the price of gold appears poised for further gains, as China’s central bank extended its buying streak to an 11th straight month and demand for the safe-haven asset continues to grow amid an ongoing US government shutdown. Spot gold prices in London surpassed the benchmark US$4,000 per ounce on Wednesday morning, hitting a new high after an identical breach by gold futures in New York on Tuesday. The surge comes as investors seek reliable sources of return in an... https://www.scmp.com/economy/china-economy/article/3328200/chinas-central-bank-aids-golds-record-setting-run-11-month-buying-streak?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3328200/chinas-central-bank-aids-golds-record-setting-run-11-month-buying-streak?utm_source=rss_feed Wed, 08 Oct 2025 05:08:45 +0000 Enoch Yiu Enoch Yiu Hong Kong note-issuing banks HSBC and Standard Chartered on Monday completed trades at the launch of the city’s cross-boundary bond repurchase (repo) scheme, according to the two lenders. The cross-boundary bond repo business was launched by the Hong Kong Monetary Authority (HKMA) and the People’s Bank of China, alongside other mainland authorities, as the latest initiative to enhance the Bond Connect scheme, which would encourage more international investors to trade in yuan-denominated... https://www.scmp.com/business/banking-finance/article/3327276/hsbc-standard-chartered-complete-first-yuan-repo-under-new-scheme?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3327276/hsbc-standard-chartered-complete-first-yuan-repo-under-new-scheme?utm_source=rss_feed Mon, 29 Sep 2025 13:30:09 +0000 Cao Li Cao Li China’s banks are edging towards their “Japanification moment”, as years of yielding margins to support the economy have “left the system thin on profitability and more exposed to credit shocks”, according to a new report by S&P Global Ratings. Japanification is characterised by a prolonged period of low growth and weak profitability, similar to the state of Japan's economy after the country's asset bubble burst in the early 1990s. While other banking systems had weathered ultra-low rates by... https://www.scmp.com/business/banking-finance/article/3326841/chinas-banks-face-their-japanification-moment-sp-report-warns?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3326841/chinas-banks-face-their-japanification-moment-sp-report-warns?utm_source=rss_feed Thu, 25 Sep 2025 09:30:12 +0000 Brian Rhoads,Raymond Ma Brian Rhoads,Raymond Ma Chery Automobile, China’s second-largest carmaker, was reportedly set to price its HK$9.14 billion (US$1.2 billion) Hong Kong initial public offering at the top of the sales range, even as a cooling economy and rampant competition weigh on the Chinese auto industry. The shares, which are due to start trading on Thursday, will be priced at HK$30.75 apiece, Reuters said, citing unidentified people. The maker of petrol-powered cars and electric vehicles (EVs) has the option to enlarge the sale,... https://www.scmp.com/plus/article/3326546/chery-auto-ipo-shows-china-confidence-withstands-economic-clouds?utm_source=rss_feed https://www.scmp.com/plus/article/3326546/chery-auto-ipo-shows-china-confidence-withstands-economic-clouds?utm_source=rss_feed Tue, 23 Sep 2025 09:00:42 +0000 Ji Siqi Ji Siqi China’s top financial officials said the country’s assets have become much more attractive to overseas capital in the past year at a high-profile press conference, adding Beijing would continue to prioritise domestic economic objectives even as interest rate cuts from the US Federal Reserve have created room for looser monetary policy. Adjustments to China’s monetary policy are “self-determined” and “data-based”, said Pan Gongsheng, governor of the People’s Bank of China, at the conference on... https://www.scmp.com/economy/policy/article/3326403/china-expands-circle-friends-overseas-investors-boost-domestic-assets?utm_source=rss_feed https://www.scmp.com/economy/policy/article/3326403/china-expands-circle-friends-overseas-investors-boost-domestic-assets?utm_source=rss_feed Mon, 22 Sep 2025 11:00:13 +0000 Aileen Chuang Aileen Chuang Companies in Hong Kong moved swiftly on Monday to take advantage of a new Swap Connect rule that lets them hedge using China’s onshore loan prime rate (LPR), as demand rises to manage yuan interest-rate risks. The measure, which was introduced by mainland China and Hong Kong regulators in May and went live on Monday, is part of a drive to expand product offerings under Swap Connect. Launched in Hong Kong in 2023, Swap Connect allows global investors to access mainland China’s interbank financial... https://www.scmp.com/business/banking-finance/article/3326365/hong-kong-firms-tap-new-swap-connect-rule-hedge-yuan-rate-risks?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3326365/hong-kong-firms-tap-new-swap-connect-rule-hedge-yuan-rate-risks?utm_source=rss_feed Mon, 22 Sep 2025 07:30:06 +0000 SCMP Editorial SCMP Editorial For people who monitor interest rates for a living, it has been a hectic week, with several major central banks making announcements. But besides finance professionals, Hong Kong people are also keenly interested. With their mortgages and business loans – and the economy in general – running on a currency pegged to the US dollar, the latest rate reduction by the US Federal Reserve also serves to indicate future rates’ movement. The main US lending rate has been lowered to 4-4.25 per cent in the... https://www.scmp.com/opinion/comment/article/3326135/us-rate-cut-offers-hong-kong-relief-uncertainties-remain?utm_source=rss_feed https://www.scmp.com/opinion/comment/article/3326135/us-rate-cut-offers-hong-kong-relief-uncertainties-remain?utm_source=rss_feed Sat, 20 Sep 2025 22:45:08 +0000 Sylvia Ma Sylvia Ma After the US Federal Reserve delivered its first interest rate cut of the year, analysts said China’s central bank would be most likely engage in moderate easing this year even as the cut creates more room for looser monetary policy. On Thursday morning, the People’s Bank of China set the yuan’s midpoint rate – also known as the daily fixing rate – at 7.1085 per US dollar, weaker than Wednesday’s rate of 7.1013. The move followed the Fed’s announcement on Wednesday of a widely expected cut of... https://www.scmp.com/economy/china-economy/article/3325935/after-fed-rate-cut-only-moderate-easing-expected-chinas-central-bank-supporting-yuan?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3325935/after-fed-rate-cut-only-moderate-easing-expected-chinas-central-bank-supporting-yuan?utm_source=rss_feed Thu, 18 Sep 2025 02:28:28 +0000 Xinmei Shen Xinmei Shen China’s two largest mobile payment services, Ant Group’s Alipay and Tencent Holdings’ Weixin Pay, have adopted a new cross-border payment system designed to facilitate cashless transactions made by foreigners in the country. Alipay, along with Ant Group’s overseas spin-off Ant International, and Weixin Pay said in separate statements on Wednesday that they were expanding support for foreign e-wallets through China’s Cross-border Interconnection Payment Gateway scheme. Ant is affiliated with... https://www.scmp.com/tech/big-tech/article/3325877/ant-groups-alipay-and-tencents-weixin-pay-embrace-chinas-cross-border-payment-system?utm_source=rss_feed https://www.scmp.com/tech/big-tech/article/3325877/ant-groups-alipay-and-tencents-weixin-pay-embrace-chinas-cross-border-payment-system?utm_source=rss_feed Wed, 17 Sep 2025 12:00:09 +0000 Danielle Popov Danielle Popov The founder and CEO of diversified investment group Freedom Holding, Timur Turlov, sees a boost in cross-border e-commerce activity between China and Kazakhstan, following a recent cooperation agreement signed in Beijing. Freedom Bank, part of Nasdaq-listed Freedom Holding, last week entered into an agreement with virtual payment provider Verum Payments and UnionPay Business, a unit of the Chinese state-owned financial services firm UnionPay, to support the development of Kazakhstan-China... https://www.scmp.com/tech/tech-trends/article/3325080/china-kazakhstan-economic-cross-border-e-commerce-ties-grow-freedom-holding-ceo?utm_source=rss_feed https://www.scmp.com/tech/tech-trends/article/3325080/china-kazakhstan-economic-cross-border-e-commerce-ties-grow-freedom-holding-ceo?utm_source=rss_feed Wed, 10 Sep 2025 23:00:08 +0000 Sylvia Ma Sylvia Ma A recent rally in China’s yuan has been primarily fuelled by stronger guidance from its central bank rather than by market forces, analysts said, pointing to a mostly steady US dollar index. However, they noted, this period of strengthening is likely to remain measured, as Beijing prefers to avoid harming the competitiveness of its exporters amid trade tensions with the United States. Over just five trading days last week, the People’s Bank of China pushed the yuan’s reference rate against the... https://www.scmp.com/economy/china-economy/article/3324501/chinas-yuan-rallies-central-bank-backing-worries-mount-over-us-dollar?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3324501/chinas-yuan-rallies-central-bank-backing-worries-mount-over-us-dollar?utm_source=rss_feed Sat, 06 Sep 2025 02:00:14 +0000 Brian Rhoads,Raymond Ma Brian Rhoads,Raymond Ma Former Chinese central bank governor Zhou Xiaochuan (周小川) voiced concerns about potential yuan-backed stablecoins, damping suggestions that policymakers are moving towards approving them. “We need to be vigilant against the risk of stablecoins being excessively used for asset speculation as misdirection could trigger fraud and instability in the financial system,” said Zhou, who headed the People’s Bank of China until 2018. CF40, a Beijing-based think tank, published a summary of Zhou’s remarks... https://www.scmp.com/plus/article/3323484/china-weighs-stablecoin-risks-against-global-yuan-dreams?utm_source=rss_feed https://www.scmp.com/plus/article/3323484/china-weighs-stablecoin-risks-against-global-yuan-dreams?utm_source=rss_feed Thu, 28 Aug 2025 09:00:20 +0000 Haining Gao Haining Gao China’s former central bank chief, Zhou Xiaochuan (周小川), warned about six potential risks from stablecoins during a discussion at an economic think tank, CF40, in July. A summary of his comments was released in Chinese on August 27. (See SCMP Plus factsheet on stablecoins.) I: Central bank Stablecoin issuers may overissue without maintaining high-quality or 100 per cent real reserves, raising the need for regulation of reserve custodians. Stablecoins can experience multiplier effects in... https://www.scmp.com/plus/article/3323444/ex-pboc-chief-zhou-highlights-stablecoin-risks?utm_source=rss_feed https://www.scmp.com/plus/article/3323444/ex-pboc-chief-zhou-highlights-stablecoin-risks?utm_source=rss_feed Thu, 28 Aug 2025 04:58:35 +0000 Sylvia Ma Sylvia Ma Former Chinese central bank governor Zhou Xiaochuan has urged a more measured tone amid a global surge of interest in stablecoins, calling for a “multidimensional assessment” of their genuine utility and the systemic risks they may pose. The United States and Hong Kong are rolling out regulatory frameworks for the asset, and speculation has been growing about the likelihood of Beijing following suit by introducing yuan-backed stablecoins in a bid to further internationalise its currency. “We... https://www.scmp.com/economy/china-economy/article/3323414/former-china-central-bank-governor-urges-caution-amid-stablecoin-frenzy?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3323414/former-china-central-bank-governor-urges-caution-amid-stablecoin-frenzy?utm_source=rss_feed Thu, 28 Aug 2025 01:59:29 +0000 Aileen Chuang Aileen Chuang Global investors have ramped up use of Chinese bonds in short-term borrowing agreements in Hong Kong, taking advantage of new measures from mainland and Hong Kong regulators that took effect on Monday. Several banks, securities firms and hedge funds completed their first trades under the offshore Bond Connect repurchase (repo) business set up by the Hong Kong Monetary Authority (HKMA), leveraging enhancements announced last month, including the repledging of bond collateral during the lifetime... https://www.scmp.com/business/banking-finance/article/3323060/chinese-bonds-find-fast-favour-hong-kong-short-term-borrowing-new-rules-take-effect?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3323060/chinese-bonds-find-fast-favour-hong-kong-short-term-borrowing-new-rules-take-effect?utm_source=rss_feed Mon, 25 Aug 2025 09:30:07 +0000 SCMP Editorial SCMP Editorial Barely a month after Australia’s Labor Prime Minister Anthony Albanese visited China to improve relations put on ice by his Liberal predecessor, the Bank of China announced it was leading the country’s largest syndicated, yuan-denominated loan to a foreign firm. Perth-based Fortescue is the world’s fourth-largest iron ore producer and China has long been its best customer, so the loan, worth a record 14.2 billion yuan (US$1.98 billion), makes good sense. The diplomatic thaw is bearing fruit. But... https://www.scmp.com/opinion/comment/article/3322499/record-yuan-loan-australian-miner-makes-good-sense?utm_source=rss_feed https://www.scmp.com/opinion/comment/article/3322499/record-yuan-loan-australian-miner-makes-good-sense?utm_source=rss_feed Wed, 20 Aug 2025 22:45:06 +0000 Sylvia Ma Sylvia Ma China is stepping up efforts to internationalise the yuan, as growing doubts about the US dollar’s stability provide a window of opportunity for the currency. The People’s Bank of China (PBOC) announced at its midyear meeting that it would expedite the yuan’s use in trade settlement and cross-border financing. “[We’ll] accelerate the expansion of the yuan’s use in trade, further enhance its financing function and optimise policies governing funding pools and overseas listings of domestic... https://www.scmp.com/economy/china-economy/article/3320690/china-eyes-bigger-global-role-yuan-us-dollar-stability-questioned?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3320690/china-eyes-bigger-global-role-yuan-us-dollar-stability-questioned?utm_source=rss_feed Mon, 04 Aug 2025 10:30:08 +0000 Mandy Zuo Mandy Zuo A financial dilemma has sent local-level financial authorities across China scrambling as they try to navigate a stablecoin frenzy that some say has become a breeding ground for chaos, with scams that have already duped millions. As a result, several local governments have elevated stablecoins to the top of their agendas in recent weeks while issuing urgent warnings to investors about illegal fundraising and fraudulent schemes. With this in mind, the nation’s top financial authorities remain... https://www.scmp.com/economy/china-economy/article/3318158/stablecoin-scams-innovation-put-chinas-financial-regulators-high-stakes-balancing-act?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3318158/stablecoin-scams-innovation-put-chinas-financial-regulators-high-stakes-balancing-act?utm_source=rss_feed Mon, 14 Jul 2025 14:00:08 +0000 Aileen Chuang Aileen Chuang Global investors could triple their current holdings of yuan-denominated bonds, aided by Beijing’s recent enhancements to the Bond Connect scheme that helped ease two-way capital flows, according to the Asia Securities Industry and Financial Markets Association (Asifma). Their investments could reach about 10 per cent of the US$22 trillion market, according to Philippe Dirckx, managing director and head of fixed income at Asifma. They held 3 per cent or 4.35 trillion yuan (US$606 billion) of the... https://www.scmp.com/business/banking-finance/article/3317738/foreign-funds-seen-tripling-chinese-bond-holdings-bond-connect-tweaks-asifma-says?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3317738/foreign-funds-seen-tripling-chinese-bond-holdings-bond-connect-tweaks-asifma-says?utm_source=rss_feed Thu, 10 Jul 2025 11:30:07 +0000 Mohammad Taha Ali Mohammad Taha Ali As China moves to accelerate global use of the digital yuan, particularly in cross-border trade along Belt and Road Initiative countries, the push is being interpreted as part of Beijing’s broader ambition to rewire the architecture of global finance. With international finance increasingly fragmented amid trade wars and sanctions, Chinese officials argue that dollar-based systems backed by the Society for Worldwide Interbank Financial Telecommunication (Swift) are vulnerable to... https://www.scmp.com/opinion/china-opinion/article/3317401/china-pushes-digital-yuan-diplomacy-amid-global-souths-dollar-dismay?utm_source=rss_feed https://www.scmp.com/opinion/china-opinion/article/3317401/china-pushes-digital-yuan-diplomacy-amid-global-souths-dollar-dismay?utm_source=rss_feed Wed, 09 Jul 2025 08:30:07 +0000 Aileen Chuang Aileen Chuang China expanded the scope of investors to include more mainland-based financial groups under the eight-year-old Bond Connect programme, taking a significant step to ease capital-flow restrictions and further establish Hong Kong as an international financial centre. Securities firms, fund managers, insurers and wealth management companies would be allowed to invest in offshore bonds through the southbound channel of the scheme from Tuesday, according to authorities in Beijing and Hong Kong. Only... https://www.scmp.com/business/banking-finance/article/3317339/china-expands-bond-connect-allowing-more-players-join-banks-offshore-market?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3317339/china-expands-bond-connect-allowing-more-players-join-banks-offshore-market?utm_source=rss_feed Tue, 08 Jul 2025 06:06:15 +0000 Sylvia Ma Sylvia Ma Issuing a stablecoin pegged to the offshore yuan in Hong Kong may be more feasible than in mainland China due to the latter’s capital controls, a central bank adviser has said. The comments from Huang Yiping, also dean of Peking University’s National School of Development, came as worries arise in Beijing’s policy circles that Washington could gain an upper hand through the cryptocurrency offshoot as a means of consolidating US dollar dominance. “As China’s capital account is not fully... https://www.scmp.com/economy/china-economy/article/3316811/economist-huang-yiping-floats-hong-kong-stablecoin-staging-ground?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3316811/economist-huang-yiping-floats-hong-kong-stablecoin-staging-ground?utm_source=rss_feed Thu, 03 Jul 2025 09:00:09 +0000 Sylvia Ma Sylvia Ma China already has de facto stablecoins in the form of WeChat Pay and Alipay, a top economist at the country’s leading investment bank has argued – amid growing calls for Beijing to quickly adapt to the global rise of digital assets. “From an economic perspective, money based on third-party payment platforms functions much like stablecoins – and China holds a comparative advantage in this area, having already built a relatively mature regulatory framework,” said Peng Wensheng, chief economist at... https://www.scmp.com/economy/china-economy/article/3316124/wechat-and-alipay-are-chinas-comparative-advantage-stablecoin-race-top-economist?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3316124/wechat-and-alipay-are-chinas-comparative-advantage-stablecoin-race-top-economist?utm_source=rss_feed Sat, 28 Jun 2025 06:00:17 +0000 June Xia June Xia China plans to use new mining technology and also dig deeper to increase gold production over the next three years as demand for the precious metal soars amid rising geopolitical tensions. In the 2025-2027 gold industry development action plan released on Monday, the Ministry of Industry and Information Technology and eight other agencies pledged to increase China’s gold reserves by 5 to 10 per cent and also raise gold output by more than 5 per cent. “Gold is a strategic mineral resource with... https://www.scmp.com/economy/china-economy/article/3315747/how-deep-will-china-go-it-aims-boost-gold-production-more-5?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3315747/how-deep-will-china-go-it-aims-boost-gold-production-more-5?utm_source=rss_feed Wed, 25 Jun 2025 07:00:08 +0000