https://www.scmp.com/rss/312970/feed Currency market action focused on developments with the Chinese yuan and the Hong Kong dollar. en https://assets.i-scmp.com/static/img/icons/scmp-meta-1200x630.png https://www.scmp.com Biman Mukherji Biman Mukherji Brics nations are assessing whether a digital payments framework linking their currencies could lessen the impact of Western sanctions, tariffs and US dollar volatility without destabilising the Washington-led global financial system. Under the plan proposed by India’s central bank, Brics is looking to allow cross-border transactions to be settled in local currencies. Its feasibility depends on how far the bloc’s members can lessen their reliance on Western-controlled payment channels without... https://www.scmp.com/week-asia/economics/article/3351860/brics-push-intra-currency-payments-immunity-against-western-clout?utm_source=rss_feed https://www.scmp.com/week-asia/economics/article/3351860/brics-push-intra-currency-payments-immunity-against-western-clout?utm_source=rss_feed Thu, 30 Apr 2026 00:00:23 +0000 Sylvia Ma Sylvia Ma Daniel Gros is the director of the Institute for European Policymaking at Bocconi University. Previously, he served as an adviser to the European Parliament, collaborated with the European Commission as economic adviser to the Delors Committee, which developed plans for the euro, and worked at the International Monetary Fund. In this interview, Gros examines the structural tensions shaping EU-China economic ties, draws lessons from the euro’s experience to analyse the yuan’s... https://www.scmp.com/economy/china-economy/article/3351329/daniel-gros-what-china-can-learn-euro-it-works-towards-global-yuan?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3351329/daniel-gros-what-china-can-learn-euro-it-works-towards-global-yuan?utm_source=rss_feed Sun, 26 Apr 2026 22:00:14 +0000 Hao Nan Hao Nan In the span of a few days earlier this month, developments that usually sit in separate policy compartments began to converge. Abu Dhabi’s crown prince arrived in Beijing as President Xi Jinping used the visit to set out China’s four-point position on the Iran war. Pakistan, now central to keeping US-Iran diplomacy alive, said no date was fixed for the next round of talks. Washington escalated pressure on buyers of Iranian oil and the banks handling related funds. Reports circulated of yuan use... https://www.scmp.com/opinion/world-opinion/article/3350916/us-dollar-subtler-shift-petroyuan-order-underfoot?utm_source=rss_feed https://www.scmp.com/opinion/world-opinion/article/3350916/us-dollar-subtler-shift-petroyuan-order-underfoot?utm_source=rss_feed Sun, 26 Apr 2026 08:30:08 +0000 Mark Magnier Mark Magnier China has crafted markets, mechanisms and incentives as the world’s largest buyer of commodities in a bid to free itself from its dependence on the US dollar, but the biggest threat to Washington’s global dollar dominance may well be Washington itself, witnesses said in testimony on Thursday before a key advisory committee to the US Congress. Economic sanctions and access to US-led global banking systems are a powerful US tool that can be used to great effect, said experts before the US-China... https://www.scmp.com/news/us/economy-trade-business/article/3350382/why-biggest-threat-us-global-dollar-dominance-may-well-be-washington-itself?utm_source=rss_feed https://www.scmp.com/news/us/economy-trade-business/article/3350382/why-biggest-threat-us-global-dollar-dominance-may-well-be-washington-itself?utm_source=rss_feed Thu, 16 Apr 2026 23:42:50 +0000 Xinyi Wu Xinyi Wu Beijing has raised the limit on banks’ overseas lending – a move that analysts say will support Chinese firms in outbound investment expansions while helping to stabilise the yuan. Regulators raised the overseas-loan leverage ratio for foreign banks in China and their joint ventures with Chinese lenders from 0.5 to 1.5 on Wednesday, according to a statement published by the central bank and the foreign exchange regulator. In a separate statement, the regulators said that the new rules would... https://www.scmp.com/economy/china-economy/article/3350350/chinas-pboc-raises-leverage-ratios-foreign-lenders-support-outbound-investment?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3350350/chinas-pboc-raises-leverage-ratios-foreign-lenders-support-outbound-investment?utm_source=rss_feed Thu, 16 Apr 2026 12:30:13 +0000 Nicholas Spiro Nicholas Spiro At first glance, the rupee is staging a recovery. India’s battered currency has gained around 1.5 per cent since March 27, making it the best-performing currency in Asia, according to Bloomberg data. However, the recent bounce belies vulnerabilities in India’s economy that have been exacerbated by the energy shock emanating from the war in Iran. India is one of the most exposed among Asia’s leading economies, importing 90 per cent of its oil and more than half its liquefied petroleum gas.... https://www.scmp.com/opinion/asia-opinion/article/3350249/bullish-narrative-around-indias-economy-odds-struggling-rupee?utm_source=rss_feed https://www.scmp.com/opinion/asia-opinion/article/3350249/bullish-narrative-around-indias-economy-odds-struggling-rupee?utm_source=rss_feed Thu, 16 Apr 2026 08:30:10 +0000 Sylvia Ma Sylvia Ma China continued to diversify its foreign exchange reserves in February, trimming its US Treasury stockpile even as overall overseas holdings of sovereign American debt rose to a record high. China’s stockpile of United States Treasuries fell to US$693.3 billion in February, down from US$694.4 billion in January, according to US Treasury Department data released on Wednesday. Although China slightly increased its US Treasury holdings in January, the uptick did little to alter a broader downward... https://www.scmp.com/economy/global-economy/article/3350275/china-trims-us-treasury-holdings-amid-rising-debt-supply-global-ownership-hits-record?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3350275/china-trims-us-treasury-holdings-amid-rising-debt-supply-global-ownership-hits-record?utm_source=rss_feed Thu, 16 Apr 2026 07:00:13 +0000 Xinyi Wu Xinyi Wu Faltering confidence in the US dollar has handed China a “golden window of opportunity” to promote the global use of its currency, according to a former head of the Chinese central bank. “The core driving force behind the current changes in the international monetary system is the United States’ own policy choices,” Zhou Xiaochuan was quoted as saying in a report published on Sunday by the New Economist, a Chinese think tank. He cited the broad application of American tariffs, the frequent use... https://www.scmp.com/economy/global-economy/article/3349868/yuans-golden-window-open-former-pboc-governor-says-us-dollar-credibility-teeters?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3349868/yuans-golden-window-open-former-pboc-governor-says-us-dollar-credibility-teeters?utm_source=rss_feed Mon, 13 Apr 2026 06:59:34 +0000 Sylvia Ma Sylvia Ma Rising demand for yuan settlement amid Middle East tensions is driving record transaction amounts in China’s cross-border payment system, analysts said, building on years of efforts to bolster financial infrastructure and expand its global network. “The Middle East conflict may have acted as a catalyst,” said Ding Shuang, chief economist for Greater China and North Asia at Standard Chartered, citing rising demand for yuan settlement, particularly in oil trade. China’s Cross-border Interbank... https://www.scmp.com/economy/global-economy/article/3349516/chinas-yuan-settlements-hit-record-and-iran-conflict-looking-catalyst?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3349516/chinas-yuan-settlements-hit-record-and-iran-conflict-looking-catalyst?utm_source=rss_feed Thu, 09 Apr 2026 13:00:12 +0000 Sylvia Ma Sylvia Ma Mainstream metrics may understate the role of China’s currency in global payments, as a growing share of transactions is now routed through Beijing’s own cross-border payment system and not fully reflected in conventional data sets, analysts say. This could help explain the gap between Beijing’s official narrative – which describes the yuan as the world’s third-largest payment currency – and readings from tracking systems such as the Society for Worldwide Interbank Financial Telecommunication... https://www.scmp.com/economy/china-economy/article/3348907/chinas-yuan-may-be-going-global-faster-western-data-suggests-analysts-say?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3348907/chinas-yuan-may-be-going-global-faster-western-data-suggests-analysts-say?utm_source=rss_feed Mon, 06 Apr 2026 15:00:07 +0000 SCMP Editorial SCMP Editorial Better safe than sorry – that seems to be why authorities have delayed the stablecoin roll-out. Industry players had expected the Hong Kong Monetary Authority (HKMA), the city’s de facto central bank, to announce the granting of a small number of stablecoin licences at the end of March. But the date came and went. The regulatory review process appears to be taking longer, given the regulators’ well-known cautious stance. But the policy – to make Hong Kong a digital-asset hub with stablecoins... https://www.scmp.com/opinion/comment/article/3348924/stablecoin-launch-delay-shows-hong-kong-would-rather-be-safe-sorry?utm_source=rss_feed https://www.scmp.com/opinion/comment/article/3348924/stablecoin-launch-delay-shows-hong-kong-would-rather-be-safe-sorry?utm_source=rss_feed Sun, 05 Apr 2026 23:15:16 +0000 Associated Press Associated Press The US Treasury Department plans to put US President Donald Trump’s signature on all new US paper currency, the agency announced on Thursday. The move would be a first for a sitting president, since traditionally, US paper currency carries the signatures of the Treasury secretary and the treasurer, not the president. The news was first reported by Vanity Fair. It was the latest instance of Trump putting his name and likeness on American cultural institutions, following his renaming of the US... https://www.scmp.com/news/world/united-states-canada/article/3348062/us-currency-bear-trumps-signature-first-sitting-president?utm_source=rss_feed https://www.scmp.com/news/world/united-states-canada/article/3348062/us-currency-bear-trumps-signature-first-sitting-president?utm_source=rss_feed Fri, 27 Mar 2026 00:33:08 +0000 Kevin Li Kevin Li In the summer of 1998, the usually placid air at the Hong Kong Monetary Authority’s headquarters in Citibank Tower suddenly evaporated as regional currencies collapsed like dominoes. Rapacious speculators had shorted currencies such as the Thai baht, the Indonesian rupiah and the Korean won and had profited handsomely. The contagion looked like it would also bring the Hong Kong dollar to its knees. As storytellers from the era have recalled, that sweltering month of August, the wolves were at... https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3348050/should-hong-kong-be-using-war-chest-firepower-northern-metropolis?utm_source=rss_feed https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3348050/should-hong-kong-be-using-war-chest-firepower-northern-metropolis?utm_source=rss_feed Fri, 27 Mar 2026 00:30:07 +0000 Dannie Peng Dannie Peng China has officially designated ciyuan as the translation for “token” – the computational units that power tools such as Claude, ChatGPT and Gemini – in a move widely seen as devising a new form of global currency for the age of artificial intelligence. In Chinese, ci translates to “word”, while yuan is commonly used as a synonym for “currency”. For instance, the basic unit of the Chinese renminbi is the yuan, and most foreign currencies are referred to as yuan in Chinese, prefixed by their... https://www.scmp.com/news/china/science/article/3347887/china-names-trillions-ai-token-after-yuan-should-us-worry-dollar?utm_source=rss_feed https://www.scmp.com/news/china/science/article/3347887/china-names-trillions-ai-token-after-yuan-should-us-worry-dollar?utm_source=rss_feed Wed, 25 Mar 2026 12:00:26 +0000 Kandy Wong Kandy Wong Welcome to Open Dialogue, a series from the South China Morning Post where we bring together leading voices to discuss the stories and subjects occupying international headlines. In this edition, we invited a prominent industry player and economist to reflect on the role of stablecoins, cryptocurrencies pegged to fiat currencies or other assets. They discuss the differing approaches of China and the United States, as well as Hong Kong’s role in China’s strategy, as the city is expected to issue... https://www.scmp.com/economy/china-economy/article/3347710/gary-liu-and-liu-xiaochun-what-role-stablecoins-could-play-china-and-us?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3347710/gary-liu-and-liu-xiaochun-what-role-stablecoins-could-play-china-and-us?utm_source=rss_feed Tue, 24 Mar 2026 22:00:28 +0000 Yeon Woo Lee Yeon Woo Lee Gold prices have continued to weaken despite escalating tensions in the US-Israel conflict with Iran, breaking from the metal’s traditional role as a geopolitical hedge, as fading expectations of interest rate cuts and a stronger US dollar weigh on sentiment, analysts said. The metal has declined about 15 per cent since a brief surge on March 2, when prices climbed to around US$5,300 per ounce following US and Israeli strikes on Iran. A modest rebound driven by technical buying on Friday did... https://www.scmp.com/business/commodities/article/3347473/gold-slides-hawkish-fed-and-strong-us-dollar-override-geopolitical-fears?utm_source=rss_feed https://www.scmp.com/business/commodities/article/3347473/gold-slides-hawkish-fed-and-strong-us-dollar-override-geopolitical-fears?utm_source=rss_feed Sun, 22 Mar 2026 09:00:27 +0000 Xinmei Shen Xinmei Shen US crypto advocates have increasingly pointed to competition with China’s new interest-bearing e-CNY to demand legislative clarity on stablecoin yields, but China is charting a completely different course for the future of digital money, experts said. “The world’s two largest economies are not so much competing in digital assets as they are pursuing very different strategies,” said Andrew Fei, a partner at law firm King & Wood Mallesons in Hong Kong. Winston Ma, adjunct professor and executive... https://www.scmp.com/news/us/article/3347221/us-china-split-digital-money-deepens-stablecoin-debate-stalls-clarity-act?utm_source=rss_feed https://www.scmp.com/news/us/article/3347221/us-china-split-digital-money-deepens-stablecoin-debate-stalls-clarity-act?utm_source=rss_feed Thu, 19 Mar 2026 17:22:14 +0000 Xinyi Wu Xinyi Wu China’s recent changes to the rules governing its global payment system could pave the way for turning it into a genuine alternative to Western networks, according to a new report. Beijing now appears to be moving towards building the Cross-border Interbank Payment System (CIPS) into a global platform compliant with multicurrency settlements and other foreign payment channels, said the study led by Ju Jiandong, a chair professor at Tsinghua University’s PBC School of Finance. Beijing recently... https://www.scmp.com/economy/china-economy/article/3347053/how-china-opened-door-creating-direct-rival-us-payment-systems?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3347053/how-china-opened-door-creating-direct-rival-us-payment-systems?utm_source=rss_feed Thu, 19 Mar 2026 02:00:07 +0000 Lam Ka-sing Lam Ka-sing Hong Kong could emerge as the world’s leading financial centre as the central government pushes to internationalise the yuan – a move that will advance the nation’s development under the 15th five-year plan while also driving the city’s own growth, a National People’s Congress (NPC) deputy has said. Li Yinquan said the city stood to benefit from increased capital as the yuan became more internationalised, since most global renminbi reserves and transaction volumes would naturally be held in Hong... https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3346011/hong-kong-tipped-be-worlds-top-financial-centre-amid-global-yuan-expansion-plan?utm_source=rss_feed https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3346011/hong-kong-tipped-be-worlds-top-financial-centre-amid-global-yuan-expansion-plan?utm_source=rss_feed Tue, 10 Mar 2026 00:30:11 +0000 Connor Mycroft Connor Mycroft Hong Kong has adequate safeguards to prevent any misuse of the Exchange Fund, according to the economist known as the “father of the city’s dollar peg”, who called concerns over the government’s decision to draw from the de facto sovereign wealth fund “a little overblown”. John Greenwood said the government’s plan to transfer HK$150 billion (US$19.1 billion) from the fund – which plays an essential role in defending the Hong Kong dollar’s peg to the US dollar – would have no effect on the... https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3345886/fears-over-exchange-fund-discipline-overblown-hong-kongs-dollar-peg-architect?utm_source=rss_feed https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3345886/fears-over-exchange-fund-discipline-overblown-hong-kongs-dollar-peg-architect?utm_source=rss_feed Mon, 09 Mar 2026 00:00:28 +0000 Xinyi Wu Xinyi Wu Beijing has stressed that it does not intend to rely on a weaker yuan for trade gains, amid a recent rally in the currency and mounting pressure from trade partners to allow it to strengthen. “China has neither the need nor the intention to gain competitive advantages in trade through currency depreciation,” said Pan Gongsheng, governor of the central bank, at a press conference of the country’s top economic officials on Friday. The comments came ahead of a new round of trade talks between China... https://www.scmp.com/economy/china-economy/article/3345755/china-fires-back-currency-depreciation-claims-denies-using-weak-yuan-boost-exports?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3345755/china-fires-back-currency-depreciation-claims-denies-using-weak-yuan-boost-exports?utm_source=rss_feed Fri, 06 Mar 2026 12:00:09 +0000 Sylvia Ma Sylvia Ma With China’s currency having steadily strengthened in recent months, the central bank has rolled out a pair of measures to lower foreign exchange hedging costs and support cross-border yuan financing. In a notice on Thursday, the People’s Bank of China refined the framework for domestic banks to conduct cross-border yuan interbank financing, explicitly endorsing their role in providing stable yuan liquidity to offshore markets through regulated channels. The move comes as Beijing has been... https://www.scmp.com/economy/china-economy/article/3344894/yuan-sizzles-chinas-central-bank-deploys-double-barrelled-policy-tweak?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3344894/yuan-sizzles-chinas-central-bank-deploys-double-barrelled-policy-tweak?utm_source=rss_feed Fri, 27 Feb 2026 10:36:47 +0000 Nicholas Spiro Nicholas Spiro It is one of the oldest sayings on Wall Street, yet the adage “markets hate uncertainty” has never stood up to scrutiny. Like most maxims, it has a ring of truth but is a gross oversimplification. What is indisputable, however, is that for several decades investors took major economic, financial and political trends for granted. For a long period beginning in the 1980s, the world was relatively predictable. Many economists dubbed this era “the great moderation”. Others pointed to the impact of... https://www.scmp.com/opinion/world-opinion/article/3344685/trumps-normalisation-market-chaos-can-only-go-so-far?utm_source=rss_feed https://www.scmp.com/opinion/world-opinion/article/3344685/trumps-normalisation-market-chaos-can-only-go-so-far?utm_source=rss_feed Thu, 26 Feb 2026 10:45:14 +0000 Luna Sun Luna Sun Richard Liu, founder of China’s retail giant JD.com, has launched a nautical brand to build out the country’s yacht industry, riding a wave of policy support to tap a fast-growing domestic market and make the vessels – traditionally associated with affluence and luxury – accessible to “everyday consumers”. Liu’s brand, Sea Expandary, signed a strategic framework agreement on Tuesday with the coastal cities of Shenzhen and Zhuhai in Guangdong, China’s southern powerhouse province, for a high-end... https://www.scmp.com/economy/china-economy/article/3344583/boat-every-dock-chinese-billionaire-unveils-plan-mass-yacht-production?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3344583/boat-every-dock-chinese-billionaire-unveils-plan-mass-yacht-production?utm_source=rss_feed Wed, 25 Feb 2026 10:30:07 +0000 Junaid Kathju Junaid Kathju Brazil’s dismissal of the idea of a Brics currency suggests that the bloc may continue to pursue less politically fraught monetary cooperation that stops short of challenging the US dollar’s dominance, such as swaps and seamless payment systems, according to analysts. During Brazilian President Luiz Inacio Lula da Silva’s recent trip to India, Lula sought to play down speculation that the 10-member grouping of developing nations was drafting plans for a shared currency. In an interview with an... https://www.scmp.com/week-asia/economics/article/3344501/why-brics-cant-do-away-us-dollar-even-currency-cooperation-rises?utm_source=rss_feed https://www.scmp.com/week-asia/economics/article/3344501/why-brics-cant-do-away-us-dollar-even-currency-cooperation-rises?utm_source=rss_feed Wed, 25 Feb 2026 00:00:18 +0000 Enoch Yiu Enoch Yiu When Wilson Chan Fung-cheung joined Hong Kong’s banking industry as a foreign-exchange trader more than four decades ago, his work involved US dollars, UK pounds, Japanese yen and various European and Asian currencies – but not Chinese yuan. “Back then, there was no yuan trading at all as, in fact, the internationalisation of the yuan only started in 2009,” recalled Chan, who has worked for various Chinese banks. Beijing’s decision that year to promote its currency for wider use in trade,... https://www.scmp.com/business/banking-finance/article/3344464/why-chinas-path-financial-superpower-status-could-begin-hong-kong?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3344464/why-chinas-path-financial-superpower-status-could-begin-hong-kong?utm_source=rss_feed Tue, 24 Feb 2026 15:00:09 +0000 Sylvia Ma Sylvia Ma With Hong Kong set to unveil its annual budget, economists have said the city should strengthen its role in pushing the internationalisation of the Chinese yuan as Beijing presses ahead with financial opening while keeping stability firmly in view. From expanding offshore yuan products to using its stablecoin regulations as a sandbox for potential cross-border payment channels, the experts said that Hong Kong could help realise the nation’s vision of becoming a “financial powerhouse”, especially... https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3344264/should-hong-kongs-next-budget-make-room-taking-yuan-global-experts-weigh?utm_source=rss_feed https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3344264/should-hong-kongs-next-budget-make-room-taking-yuan-global-experts-weigh?utm_source=rss_feed Mon, 23 Feb 2026 00:00:30 +0000 Nicholas Spiro Nicholas Spiro The US dollar’s decline is not over yet. Having fallen 10 per cent last year, the dollar index – a gauge of the US dollar’s performance against a basket of other major currencies – is down a further 0.6 per cent this year in the face of relatively high US interest rates, a resilient economy and the dominance of American technology companies. The findings of a Bank of America survey on February 13 showed that fund managers’ exposure to the US dollar had dropped below last April’s low, when US... https://www.scmp.com/opinion/china-opinion/article/3343966/us-dollar-weakness-no-game-changer-globalised-yuan?utm_source=rss_feed https://www.scmp.com/opinion/china-opinion/article/3343966/us-dollar-weakness-no-game-changer-globalised-yuan?utm_source=rss_feed Thu, 19 Feb 2026 08:30:08 +0000 Jevans Nyabiage Jevans Nyabiage Beijing’s push to internationalise the yuan is gaining a new vehicle in Africa as another major multilateral lender is set to diversify towards the Chinese currency to slash borrowing costs and reduce the risks of dollar volatility. Multilateral lender Africa Finance Corporation (AFC) has confirmed that a debut panda bond issuance is “on the table for this year”, as it looks to deepen its ties with Chinese capital markets following last year’s successful triple-A Chinese rating. Banji Fehintola,... https://www.scmp.com/news/china/diplomacy/article/3343347/africas-yuan-pivot-why-more-top-lenders-are-eyeing-chinas-bond-market?utm_source=rss_feed https://www.scmp.com/news/china/diplomacy/article/3343347/africas-yuan-pivot-why-more-top-lenders-are-eyeing-chinas-bond-market?utm_source=rss_feed Fri, 13 Feb 2026 04:00:14 +0000 Sylvia Ma Sylvia Ma China’s central bank set the yuan’s daily fixing rate at its strongest level since mid-2023 on Wednesday, as the Chinese currency extended gains with investors increasingly rotating out of US dollar assets amid concerns over the Federal Reserve’s independence and US debt sustainability. The People’s Bank of China set the yuan’s midpoint rate – also known as the daily fixing rate – at 6.9438 to the US dollar, which marked the strongest level in 33 months. The move followed months of steady... https://www.scmp.com/economy/china-economy/article/3343174/china-lets-yuan-rise-strongest-level-years-de-dollarisation-trend-grows?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3343174/china-lets-yuan-rise-strongest-level-years-de-dollarisation-trend-grows?utm_source=rss_feed Wed, 11 Feb 2026 08:11:12 +0000 Ji Siqi,Eunice Xu Ji Siqi,Eunice Xu With China explicitly banning onshore tokenisation of real-world assets (RWAs) while tightening scrutiny of related offshore activities, analysts say the clampdown is aimed at curbing financial fraud and disorderly capital outflows, while still preserving space for regulated innovation in markets such as Hong Kong. Tokenisation refers to the process of converting the rights to an RWA – including real estate, art, bonds and commodities like gold – into a digital token. Such tokens represent... https://www.scmp.com/economy/china-economy/article/3342952/chinas-necessary-asset-tokenisation-ban-targets-scams-and-capital-flight-analysts-say?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3342952/chinas-necessary-asset-tokenisation-ban-targets-scams-and-capital-flight-analysts-say?utm_source=rss_feed Mon, 09 Feb 2026 12:30:19 +0000 Xiaofei Xu Xiaofei Xu London has cemented its role as a leading offshore hub for China’s yuan, according to a new financial cooperation agreement that also aims to ease the cross-listing of firms in each other’s markets. This emerged from the first meeting of the UK-China Financial Working Group, which convened in Beijing on Saturday. The meeting coincided with the final day of British Prime Minister Keir Starmer’s state visit. The meeting’s outcome and a joint statement were not made public until Friday. “The... https://www.scmp.com/economy/global-economy/article/3342696/uk-china-boost-financial-ties-deepen-londons-role-offshore-yuan-hub?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3342696/uk-china-boost-financial-ties-deepen-londons-role-offshore-yuan-hub?utm_source=rss_feed Fri, 06 Feb 2026 13:00:29 +0000 Xinmei Shen Xinmei Shen US Treasury Secretary Scott Bessent said he “would not be surprised” if China is already looking into ways to challenge the US’ pre-eminence in digital assets, given Hong Kong's efforts to develop the industry. When testifying before the Senate Banking Committee on Thursday, Bessent said that there are “lots of rumours of Chinese digital assets” possibly being backed by something other than its currency yuan, such as gold, but that the US could not confirm such claims. “We don’t know that for... https://www.scmp.com/news/us/article/3342569/us-treasury-chief-warns-china-could-challenge-us-digital-asset-lead-hong-kong?utm_source=rss_feed https://www.scmp.com/news/us/article/3342569/us-treasury-chief-warns-china-could-challenge-us-digital-asset-lead-hong-kong?utm_source=rss_feed Thu, 05 Feb 2026 20:12:01 +0000 Jess Ma,Leopold Chen Jess Ma,Leopold Chen Hong Kong was shaken last week by a 51 million yen (US$327,560) robbery after two staff members from a Japanese currency exchange company reported that their cash was stolen outside a money changer in Sheung Wan. The two Japanese men told officers they had made an appointment to exchange about 190 million yen at a local remittance shop on the day they flew to the city. Police arrested six suspects, including one of the victims, who allegedly acted as a mole in the plot. Industry insiders said... https://www.scmp.com/news/hong-kong/law-and-crime/article/3342293/are-hong-kong-foreign-exchange-firms-secure-enough?utm_source=rss_feed https://www.scmp.com/news/hong-kong/law-and-crime/article/3342293/are-hong-kong-foreign-exchange-firms-secure-enough?utm_source=rss_feed Wed, 04 Feb 2026 02:01:43 +0000 SCMP Editorial SCMP Editorial China is ready to become a financial superpower with a global currency. President Xi Jinping has spelled out his vision for the renminbi as a “powerful currency” with global reserve status while being widely used in world trade, investment and foreign exchange. That will be a big plan for the next five years. The official Qiushi journal recently published Xi’s remarks based on a speech he made in 2024. It came at a time when US President Donald Trump made no secret of his wish for a weaker... https://www.scmp.com/opinion/comment/article/3342191/china-well-placed-take-advantage-shift-away-us-dollar?utm_source=rss_feed https://www.scmp.com/opinion/comment/article/3342191/china-well-placed-take-advantage-shift-away-us-dollar?utm_source=rss_feed Tue, 03 Feb 2026 23:15:36 +0000 Letters Letters Feel strongly about these letters, or any other aspects of the news? Share your views by emailing us your Letter to the Editor at letters@scmp.com or filling in this Google form. Submissions should not exceed 400 words The Chinese yuan-US dollar exchange rate currently has the yuan trading at just below the 7.0 mark, on the back of the US currency’s weakness. The Hong Kong dollar was linked to the US dollar at HK$7.80 since October 1983, just over 40 years ago. The link was inspired; it was put... https://www.scmp.com/opinion/letters/article/3341807/us-dollar-weakens-time-rethink-hong-kong-dollar-peg?utm_source=rss_feed https://www.scmp.com/opinion/letters/article/3341807/us-dollar-weakens-time-rethink-hong-kong-dollar-peg?utm_source=rss_feed Mon, 02 Feb 2026 03:30:08 +0000 He Huifeng He Huifeng China needs to build a “strong currency” that can become widely used in international trade, investment and foreign exchange markets, and reach the status of a global reserve. The mission for the yuan was from excerpts of a speech by President Xi Jinping and published online on Saturday by Qiushi, the ruling Communist Party’s leading theoretical journal. Xi made the speech in 2024 to provincial and ministerial officials about building the country into a global financial powerhouse. Parts of Xi’s... https://www.scmp.com/economy/china-economy/article/3341958/china-strong-currency-mission-make-yuan-global-reserve-xi?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3341958/china-strong-currency-mission-make-yuan-global-reserve-xi?utm_source=rss_feed Sat, 31 Jan 2026 13:04:36 +0000 Anthony Rowley Anthony Rowley Compared with the turmoil threatened by US President Donald Trump’s actions in everything from geopolitics to trade, the outcome of Japan’s parliamentary lower house election, set for February 8, may seem like small beer. Yet it could presage a great upheaval in global finance. The election outcome is widely expected to strengthen the political power base of the fiscally expansionist Japanese prime minister, Sanae Takaichi, and increase borrowing when government debt almost everywhere is already... https://www.scmp.com/opinion/asia-opinion/article/3341741/how-one-election-japan-could-upend-bond-markets-and-global-finance?utm_source=rss_feed https://www.scmp.com/opinion/asia-opinion/article/3341741/how-one-election-japan-could-upend-bond-markets-and-global-finance?utm_source=rss_feed Sat, 31 Jan 2026 08:30:07 +0000 SCMP Editorial SCMP Editorial Hong Kong’s Exchange Fund had a stellar year in 2025, having posted its best annual gain since the Hong Kong Monetary Authority was set up more than three decades ago. The HKMA could have celebrated. Instead, its chief executive, Eddie Yue Wai-man, sounded a cautious note about economic uncertainties facing the city going forward. He is right to be cautious as the challenges are both domestic and external. Quite simply, given the high volatility of global capital markets, such outperformance... https://www.scmp.com/opinion/comment/article/3341808/hong-kong-cannot-take-its-exchange-funds-stellar-year-granted?utm_source=rss_feed https://www.scmp.com/opinion/comment/article/3341808/hong-kong-cannot-take-its-exchange-funds-stellar-year-granted?utm_source=rss_feed Fri, 30 Jan 2026 22:46:08 +0000 SCMP Editorial SCMP Editorial Gold prices have breached the US$5,500 mark, thanks in no small part to the erratic comments and policies of Donald Trump. The US president’s return to the White House saw the price of the precious metal almost double in a little over a year. When Trump said a weaker dollar was “great”, gold rallied some more. Everything he touches and talks about seems to lead to higher prices for gold. That is, one has to admit, a kind of Midas touch. Incidentally, through a combination of foresight and luck,... https://www.scmp.com/opinion/comment/article/3341682/no-better-time-hong-kong-strike-its-golden-deal-shanghai?utm_source=rss_feed https://www.scmp.com/opinion/comment/article/3341682/no-better-time-hong-kong-strike-its-golden-deal-shanghai?utm_source=rss_feed Thu, 29 Jan 2026 23:15:12 +0000 Sylvia Ma Sylvia Ma Gold’s blistering rally to start 2026 – surging past US$5,500 an ounce – has already eclipsed many full-year price targets, forcing analysts to upgrade their outlooks. And for some, the US$6,000 threshold is now in view. The buying spree has prompted some Chinese funds to suspend new purchases, with one warning investors of “the risk of trading at a premium in the secondary market”. As of midday Thursday, spot gold stood at about US$5,540 per ounce, easing from an earlier high of US$5,598... https://www.scmp.com/economy/global-economy/article/3341653/runaway-gold-why-even-wall-street-cant-keep-metals-record-ascent?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3341653/runaway-gold-why-even-wall-street-cant-keep-metals-record-ascent?utm_source=rss_feed Thu, 29 Jan 2026 06:48:57 +0000 Enoch Yiu Enoch Yiu The Exchange Fund posted its best annual gain since the Hong Kong Monetary Authority (HKMA) was set up in 1993, as solid stock and bond market returns boosted the city’s financial war chest used to defend the local currency. The Exchange Fund’s full-year earnings for 2025 jumped 51 per cent to HK$331 billion (US$42 billion), compared with HK$218.8 billion in 2024, the HKMA said on Wednesday. The returns surpassed the previous record of HK$264 billion set in 2017. “Overall, the global financial... https://www.scmp.com/business/banking-finance/article/3341540/exchange-fund-reports-record-earnings-2025?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3341540/exchange-fund-reports-record-earnings-2025?utm_source=rss_feed Wed, 28 Jan 2026 08:50:25 +0000 Sylvia Ma Sylvia Ma For decades, the US dollar has served as the currency of global reserve, the de facto anchor for the vast majority of international exchanges. Consequently, United States government debt – most commonly in the form of Treasury assets such as bonds, notes and bills – has long been regarded as a safe haven by investors, prized for its unmatched liquidity and deep market penetration. That faith has remained strong in the past, even amid global financial crises. But the events of recent weeks... https://www.scmp.com/economy/global-economy/article/3341391/age-trump-are-safe-haven-us-assets-not-so-safe-any-more?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3341391/age-trump-are-safe-haven-us-assets-not-so-safe-any-more?utm_source=rss_feed Tue, 27 Jan 2026 22:00:13 +0000 Ushar Daniele Ushar Daniele Since losing his job two years ago, Singaporean Gurpal Singh has been making weekly trips by car across the border to the Malaysian city of Johor Bharu to buy cheaper groceries and fuel. But as Malaysia’s currency continues to strengthen, bargain-hunting visitors from Singapore like him are getting less value for their purchases. On Tuesday afternoon, the Singapore dollar was trading at 3.11 against the Malaysian ringgit, down from 3.15 in early January and 3.26 in October last year. Economists... https://www.scmp.com/week-asia/economics/article/3341448/malaysian-ringgit-strengthens-singapore-shoppers-johor-reap-less-savings?utm_source=rss_feed https://www.scmp.com/week-asia/economics/article/3341448/malaysian-ringgit-strengthens-singapore-shoppers-johor-reap-less-savings?utm_source=rss_feed Tue, 27 Jan 2026 13:02:56 +0000 Aileen Chuang Aileen Chuang The sudden appreciation of the Japanese yen has intensified risk-off sentiment among investors, as concerns over elevated bond yields, policy uncertainty and credit risks in the world’s fifth-largest economy weigh on market confidence, according to analysts. The yen rose to a two-month high on Monday, hitting 153.61 per US dollar as of 5.30pm as speculation surged that US and Japanese authorities could intervene to prop up the currency. It was last at a similar level on November 6, when it... https://www.scmp.com/business/markets/article/3341275/spiking-yen-fuels-risk-averse-mood-investors-take-defensive-stance?utm_source=rss_feed https://www.scmp.com/business/markets/article/3341275/spiking-yen-fuels-risk-averse-mood-investors-take-defensive-stance?utm_source=rss_feed Mon, 26 Jan 2026 11:00:12 +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 Matteo Giovannini Matteo Giovannini As China prepares its digital yuan for wider domestic and cross-border use, the global debate has turned again to a familiar question: is Beijing trying to challenge the US dollar’s dominance? But this misses the more consequential point. The significance of China’s digital currency push lies not in substitution, but in the transformation of the infrastructure that underpins international payments. Over the past few years, the e-CNY has evolved into one of the world’s most advanced central bank... https://www.scmp.com/opinion/china-opinion/article/3341064/talk-digital-yuan-challenging-dollar-dominance-misses-real-power-shift?utm_source=rss_feed https://www.scmp.com/opinion/china-opinion/article/3341064/talk-digital-yuan-challenging-dollar-dominance-misses-real-power-shift?utm_source=rss_feed Sun, 25 Jan 2026 21:30:08 +0000 Bloomberg Bloomberg Malaysia’s world-leading producers of latex gloves are facing tightened profit margins as the nation’s strong currency bites into dollar-denominated earnings, underscoring challenges for the nation’s exporters. “While ringgit strength lowers systemic risk at the macro level, it comes at the expense of exporter earnings,” said Teck Yong Eng, business enterprise and analytics professor at the University of Reading Malaysia. The strengthened Malaysian currency hurt first-quarter earnings of Top... https://www.scmp.com/news/asia/southeast-asia/article/3341077/gloves-are-malaysias-strong-ringgit-bites-profits-worlds-largest-makers?utm_source=rss_feed https://www.scmp.com/news/asia/southeast-asia/article/3341077/gloves-are-malaysias-strong-ringgit-bites-profits-worlds-largest-makers?utm_source=rss_feed Sat, 24 Jan 2026 00:29:11 +0000 Sylvia Ma Sylvia Ma China’s central bank has strengthened the yuan’s daily fixing rate to break through the psychologically important level of 7 per US dollar for the first time since May 2023, as the American currency weakens amid concerns over recent US attempts to gain control of Greenland. The People’s Bank of China set the yuan’s midpoint rate – also known as the daily fixing rate – at 6.9929 to the US dollar on Friday, after weeks of keeping the benchmark just on the weaker side of the 7 mark. The move came... https://www.scmp.com/economy/china-economy/article/3340929/china-sets-yuan-strongest-rate-years-greenland-furore-affects-us-dollar?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3340929/china-sets-yuan-strongest-rate-years-greenland-furore-affects-us-dollar?utm_source=rss_feed Fri, 23 Jan 2026 04:00:48 +0000 Sylvia Ma Sylvia Ma China should leverage its massive buying power to boost imports settled in yuan and shift towards a more balanced trade structure, to accelerate the currency’s global use, according to a former central bank adviser. The proposal signals a potential opportunity for the yuan’s internationalisation, years after Beijing kicked off the process in 2009 by allowing selected exporters to be paid in the Chinese currency. “China is the world’s largest goods exporter, but the yuan’s international standing... https://www.scmp.com/economy/china-economy/article/3340653/china-should-leverage-buying-power-boost-yuans-use-trade-former-pboc-adviser?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3340653/china-should-leverage-buying-power-boost-yuans-use-trade-former-pboc-adviser?utm_source=rss_feed Wed, 21 Jan 2026 05:36:24 +0000