https://www.scmp.com/rss/320300/feed China’s central bank shocked markets on 11th August when it devalued its currency, the yuan, by lowering its daily mid-point trading price to 1.87 per cent weaker against the US dollar. A day later, the central bank sent shockwaves again with a second devaluation, pushing down the price by another 1.62 per cent against the US dollar. Fears have mounted of a regional currency war as China’s moves come on the back of the softening of Japan’s yen and the Korean won over the past year. China’s... en https://assets.i-scmp.com/static/img/icons/scmp-meta-1200x630.png https://www.scmp.com The yuan extended its losses for a seventh straight session on Friday after the People’s Bank of China set the midpoint lower for a third consecutive day, but analysts expect the central bank to soon take action to stabilise the currency hit by the simmering US-China trade dispute. The PBOC set the midpoint lower by 98 basis points, or 0.15 per cent, at 6.4804 per US dollar. The midpoint has been reduced by a combined 0.85 per cent since Wednesday, with the level now at a new five-month low. As... https://www.scmp.com/business/banking-finance/article/2151941/currency-strategist-expects-chinas-central-bank-intervene?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/2151941/currency-strategist-expects-chinas-central-bank-intervene?utm_source=rss_feed Fri, 22 Jun 2018 03:07:43 +0000 Changes to some reserve requirements by the People’s Bank of China this week that made it easier to short the yuan onshore and bet against it offshore had raised speculation that the authorities were worried about the currency’s recent strengthening. But analysts said that the exchange rate was unlikely to be a major concern, as it is still stable in trade-weighted terms, and that instead the central bank may be using the easing of depreciation pressure as an opportunity to increase the two-way... https://www.scmp.com/business/markets/article/2110825/yuans-gains-opportunity-chinas-central-bank-push-reform-not-matter?utm_source=rss_feed https://www.scmp.com/business/markets/article/2110825/yuans-gains-opportunity-chinas-central-bank-push-reform-not-matter?utm_source=rss_feed Tue, 12 Sep 2017 07:40:07 +0000 Over the past ten days , the yuan has appreciated 1.1 per cent against the US dollar in the onshore market ... Traders believe the measures taken by the PBOC are aimed at crushing speculators who have a bearish outlook on the yuan. -- SCMP, June 6 Forex traders have generally been complaining over the last few days that the People’s Bank of China has been pushing its weight around a bit too heavily to prove that it remains boss of the yuan exchange rate. But what if the Chinese central bank is... https://www.scmp.com/business/banking-finance/article/2097291/no-tears-needed-forex-losers-peoples-bank-goes-about-its?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/2097291/no-tears-needed-forex-losers-peoples-bank-goes-about-its?utm_source=rss_feed Wed, 07 Jun 2017 07:02:12 +0000 China Southern Airlines, the largest passenger carrier in Asia, saw its net profit surge 35 per cent last year to 5.04 billion yuan (US$731.6 million) last year as it repaid dollar debt ahead of schedule to mitigate the impact of the yuan’s depreciation. Turnover rose 2.98 per cent to 114.98 billion yuan from 2015, according to the carrier’s filing to the Hong Kong stock exchange on Thursday. The firm said it recorded an foreign-exchange loss of 3.27 billion yuan resulting from the yuan’s... https://www.scmp.com/business/companies/article/2083560/china-southern-airlines-posts-35pc-rise-net-profit-2016?utm_source=rss_feed https://www.scmp.com/business/companies/article/2083560/china-southern-airlines-posts-35pc-rise-net-profit-2016?utm_source=rss_feed Thu, 30 Mar 2017 14:12:48 +0000 A key US dollar index hovered at its lowest level in more than two months on Wednesday and posted its worst January performance in three decades after US President Donald Trump and his trade adviser hit out at China, Japan and Germany over currency devaluation to gain a trade advantage over the US. The ICE dollar index, a measure of the greenback’s strength against six rival currencies, traded at 99.795 on Wednesday afternoon after touching a low of 99.603 in the morning. It was the lowest level... https://www.scmp.com/business/markets/article/2067108/dollar-logs-worst-january-30-years-after-trump-slams-china-japan?utm_source=rss_feed https://www.scmp.com/business/markets/article/2067108/dollar-logs-worst-january-30-years-after-trump-slams-china-japan?utm_source=rss_feed Wed, 01 Feb 2017 03:30:45 +0000 China’s overseas real estate investment will likely hit a blip this year after reporting sizzling growth in 2016 in the wake of Beijing’s tightened foreign-exchange control. According to global property service firm JLL, outbound real estate investment jumped 53 per cent to US$33 billion last year as a result of the increasing acquisition of assets around the globe by Chinese institutions including insurers, sovereign wealth funds and developers. But Joe Zhou, JLL’s head of research in China,... https://www.scmp.com/property/hong-kong-china/article/2064951/chinas-outbound-real-estate-investment-fall-forex-curbs?utm_source=rss_feed https://www.scmp.com/property/hong-kong-china/article/2064951/chinas-outbound-real-estate-investment-fall-forex-curbs?utm_source=rss_feed Tue, 24 Jan 2017 08:23:32 +0000 “China’s currency outflows may be bigger than they look,” warned a report in the South China Morning Post earlier this month. The article played into the narrative that has prevailed in financial markets since August last year, when the authorities in Beijing sprung a surprise 2 per cent devaluation of the yuan against the US dollar. According to this narrative, a crisis of confidence in China’s future growth and stability has triggered mass capital flight – capital flight that left unchecked... https://www.scmp.com/week-asia/business/article/2039086/why-fears-mass-capital-flight-china-are-overblown?utm_source=rss_feed https://www.scmp.com/week-asia/business/article/2039086/why-fears-mass-capital-flight-china-are-overblown?utm_source=rss_feed Mon, 24 Oct 2016 01:30:45 +0000 The yuan pulled back after a strong opening on Monday as the People’s Bank of China (PBOC) set the daily fixing higher. Onshore yuan traded in Shanghai dropped 0.13 per cent to 6.5055 against the US dollar at 5.05pm on Monday. The currency strengthened to an intraday high of 6.4951 earlier before weakening in late trading, extending its decline for a fourth consecutive day. In intraday trade on Thursday the rate touched 6.5092, the lowest for a month. The yuan was down 0.36 per cent last week,... https://www.scmp.com/business/money/markets-investing/article/1942566/yuan-weakens-despite-peoples-bank-china-fixing?utm_source=rss_feed https://www.scmp.com/business/money/markets-investing/article/1942566/yuan-weakens-despite-peoples-bank-china-fixing?utm_source=rss_feed Mon, 09 May 2016 02:48:32 +0000 Imagine 10 or 20 years from now — those Chinese mainlanders who purchased some 24 per cent of the Hong Kong life insurance policies last year find the returns are much lower than they expected; it may well bring a flood of complaints. This risks Hong Kong’s reputation as an international financial centre. The soon-to-be-established Insurance Authority must take the issue on as a priority. It also explains why China’s insurance regulator warned mainlanders buying life policies in Hong Kong to be... https://www.scmp.com/business/companies/article/1938381/hong-kong-must-tighten-rules-insurers-after-china-watchdogs?utm_source=rss_feed https://www.scmp.com/business/companies/article/1938381/hong-kong-must-tighten-rules-insurers-after-china-watchdogs?utm_source=rss_feed Mon, 25 Apr 2016 07:13:53 +0000 Fundraising in Hong Kong hit the lowest level in a decade in the first quarter of this year as poor stock market performance hit companies’ plans to list or issue new shares, but the city still remains the largest initial public offering (IPO) market worldwide, according to Thomson Reuters data. Brokers believe the worst is over, with a stock rebound likely in the second quarter. “It was a really bad first quarter as the stock markets have been volatile from the beginning of the year while the... https://www.scmp.com/business/companies/article/1931322/still-no-1-ipos-fundraising-through-stocks-and-bonds-record-lows?utm_source=rss_feed https://www.scmp.com/business/companies/article/1931322/still-no-1-ipos-fundraising-through-stocks-and-bonds-record-lows?utm_source=rss_feed Mon, 28 Mar 2016 08:13:31 +0000 Beijing’s plan to introduce a new tax to combat currency speculation is likely to hit the yuan’s internationalisation, say analysts. The yuan fell by the most in a month last week after Bloomberg reported that Beijing was considering introducing a Tobin tax to curb currency speculation. People’s Bank of China deputy governor Yi Gang said such a tax was still “an academic subject”. In October, he had said the authorities were looking at ways to curb currency speculation, including a Tobin... https://www.scmp.com/business/companies/article/1928769/new-tax-hurt-chinas-global-plans-yuan?utm_source=rss_feed https://www.scmp.com/business/companies/article/1928769/new-tax-hurt-chinas-global-plans-yuan?utm_source=rss_feed Tue, 22 Mar 2016 06:27:12 +0000 Onshore and offshore yuan stabilised this week after clawing back most of their losses this year but analysts still see volatility ahead despite assurances from the central bank. The yuan is steady at about 6.50 to the US dollar in both the onshore and offshore markets this week, the strongest level seen in recent months. The rise of the yuan over the past two weeks was mainly because the US dollar turned weaker against other currencies, said Pheona Tsang, head of fixed income for BEA Union... https://www.scmp.com/business/money/money-news/article/1914081/yuan-stabilises-doubts-over-how-long-calm-can-last?utm_source=rss_feed https://www.scmp.com/business/money/money-news/article/1914081/yuan-stabilises-doubts-over-how-long-calm-can-last?utm_source=rss_feed Fri, 19 Feb 2016 07:15:45 +0000 Both Hong Kong dollar and Chinese yuan rose on Monday morning while the interbank interest rate continued to rise. Hong Kong dollar continued to bounce back on Monday morning to trade at 7.7903, edging up 0.11 per cent. It has been rising for three straight days since big buying orders pushed the currency back above the 7.80 level from the early hours of Thursday. The local currency once hit 7.8294 on Wednesday midnight, its lowest in eight and a half years. The Kong dollar lost 0.01 per cent... https://www.scmp.com/business/money/article/1904846/hong-kong-dollar-and-offshore-yuan-stronger-while-borrowing-cost?utm_source=rss_feed https://www.scmp.com/business/money/article/1904846/hong-kong-dollar-and-offshore-yuan-stronger-while-borrowing-cost?utm_source=rss_feed Mon, 25 Jan 2016 04:20:13 +0000 Hong Kong has become ground zero for a battle between the People’s Bank of China and currency speculators, as the central bank employed a shock and awe tactic in defence of the currency by pushing the overnight funding rate to 200 per cent Tuesday afternoon. Alleviating pressure on the offshore yuan is not without cost for the People’s Bank, however, as it may slow down progress for the internationalisation of the yuan. The PBOC intervened in the offshore yuan market during the past two days by... https://www.scmp.com/business/global-economy/article/1900487/pbocs-shock-and-awe-won-round-battle-not-war-currency?utm_source=rss_feed https://www.scmp.com/business/global-economy/article/1900487/pbocs-shock-and-awe-won-round-battle-not-war-currency?utm_source=rss_feed Tue, 12 Jan 2016 14:33:20 +0000 Chinese officials are voicing support for their tumbling currency and intervening to bolster it just as Pacific Investment Management Co. (PIMCO) says the yuan is poised to fall further. Bets against the yuan will fail and calls for a large decline are “ridiculous,” said Han Jun, the deputy director of China’s office of the central leading group for financial and economic affairs. Another official said investors misunderstood central bank currency shifts last week that sent the yuan down. Pimco... https://www.scmp.com/business/article/1900435/chinese-officials-back-yuan-pimco-says-its-going-fall?utm_source=rss_feed https://www.scmp.com/business/article/1900435/chinese-officials-back-yuan-pimco-says-its-going-fall?utm_source=rss_feed Tue, 12 Jan 2016 11:31:56 +0000 The US Treasury has dropped its view that the mainland's currency is "significantly undervalued" while saying the forces driving appreciation in the longer term remain and that Beijing needs to allow such strengthening eventually. The yuan remains "below its appropriate medium-term valuation", the department said in its semi-annual report on foreign-exchange policies. The "core factors" that had driven the yuan's appreciation in recent years remained in place, such as a large and growing... https://www.scmp.com/news/china/economy/article/1870196/us-treasury-drops-view-yuan-being-significantly-undervalued?utm_source=rss_feed https://www.scmp.com/news/china/economy/article/1870196/us-treasury-drops-view-yuan-being-significantly-undervalued?utm_source=rss_feed Tue, 20 Oct 2015 19:39:19 +0000 Lee Wang-chung, the manager of a car parts factory in Vietnam, swears that he won't buy from the country's chief raw materials supplier - China. The quality is so suspect, he says, that even thrifty Vietnamese prefer to splash out a bit more for Japanese motorbikes. "We don't want to save costs for a big adventure on quality," said Lee, general-director of Taiwanese-owned Elma Vietnam Industrial. It will get harder to resist temptation. Steel and other materials from China's massive producers... https://www.scmp.com/business/china-business/article/1861799/asia-struggles-impact-devalued-yuan?utm_source=rss_feed https://www.scmp.com/business/china-business/article/1861799/asia-struggles-impact-devalued-yuan?utm_source=rss_feed Sun, 27 Sep 2015 12:15:45 +0000 Bankers and economists have mixed views over whether the US Federal Reserve will raise interest rates this week but most believe China will cut rates and devalue the yuan further this year. CLSA equity strategist Christopher Wood yesterday said he does not expect the US to increase interest rates at the Fed meeting this week as he does not believe US economic conditions support a rate rise. The Fed will meet on Wednesday and Thursday to decide on the timing and the quantum of an interest rate... https://www.scmp.com/business/global-economy/article/1858194/fed-interest-rate-timing-still-unclear-most-experts-tip?utm_source=rss_feed https://www.scmp.com/business/global-economy/article/1858194/fed-interest-rate-timing-still-unclear-most-experts-tip?utm_source=rss_feed Mon, 14 Sep 2015 16:15:30 +0000 One of the most frequently heard terms in global capital markets this year must be the "new normal", which generally refers to how China plans to deal with its slower economic growth and avoid a hard landing that could have a negative impact on world economies. The real challenge for Beijing, however, is how to explain the "new normal" story well. Premier Li Keqiang was undoubtedly the most widely anticipated speaker at the World Economic Forum's (WEF) China-focused annual conference in Dalian... https://www.scmp.com/business/article/1857800/selling-chinas-new-normal-story-world?utm_source=rss_feed https://www.scmp.com/business/article/1857800/selling-chinas-new-normal-story-world?utm_source=rss_feed Sun, 13 Sep 2015 13:45:15 +0000 The People's Bank of China (PBOC) surprised the markets on August 11 by changing its daily fixing mechanism, which led to a 3 per cent plus devaluation of the renminbi against the US dollar. The fixing has since been based on the previous day's average market closing rate quoted from the China Foreign Exchange Trading System, instead of on the moving average closing rates of the past 10 trading days. The conventional wisdom for such a move was devaluation, under the guise of foreign exchange... https://www.scmp.com/business/markets/article/1857714/chinas-yuan-devaluation-part-wider-transition?utm_source=rss_feed https://www.scmp.com/business/markets/article/1857714/chinas-yuan-devaluation-part-wider-transition?utm_source=rss_feed Sun, 13 Sep 2015 07:07:28 +0000 Global investors and government leaders will have their eyes on the northern Chinese port city of Dalian for the next few days as premier Li Keqiang is expected to speak at the “Summer Davos” to an audience of over 1,700 including many who are increasingly concerned about the development of the world’s second-largest economy. Li is no stranger to the “Annual Meeting of the New Champions” of the World Economic Forum (WEF). “Summer Davos” was in fact an initiative launched by Li’s predecessor, Wen... https://www.scmp.com/comment/insight-opinion/article/1856569/what-expect-chinas-premier-li-keqiang-he-seeks-reassure?utm_source=rss_feed https://www.scmp.com/comment/insight-opinion/article/1856569/what-expect-chinas-premier-li-keqiang-he-seeks-reassure?utm_source=rss_feed Wed, 09 Sep 2015 02:00:45 +0000 The yuan’s acceptance in trade settlements and cross-border payments faces short-term hiccups, but the long-term outlook remains bright, experts say. Companies interested in tapping the yuan to finance imports or exports might be bogged down in the wake of a fixing regime change that led to the surprise devaluation of the currency last month, but only for the time being, said Biswajyoti Upadhyay, the head of greater China and North Asia product management transaction banking at Standard... https://www.scmp.com/business/money/article/1856269/depreciation-not-seen-setback-yuans-growing-use-global-payments?utm_source=rss_feed https://www.scmp.com/business/money/article/1856269/depreciation-not-seen-setback-yuans-growing-use-global-payments?utm_source=rss_feed Tue, 08 Sep 2015 07:45:30 +0000 China’s foreign exchange reserves are expected to have declined from US$100 to US$300 billion last month because the People’s Bank of China intervened to support the yuan in the onshore exchange market, currency traders said on Monday. French lender Societe Generale estimate China’s foreign reserve fell by US$150 billion to US$3.5 trillion by the end of August. As of end July, China held US$3.65 trillion in foreign exchange reserves, according to the PBOC, down from US$3.69 trillion by the end... https://www.scmp.com/business/markets/article/1855916/chinas-fx-reserves-seen-falling-due-intervention-onshore-yuan?utm_source=rss_feed https://www.scmp.com/business/markets/article/1855916/chinas-fx-reserves-seen-falling-due-intervention-onshore-yuan?utm_source=rss_feed Mon, 07 Sep 2015 02:45:45 +0000 Welcome to the SCMP's live markets blog. The intense volatility of recent weeks has every chance of remaining the core underlying theme of activity. Investors are increasingly focused the broader question of how this episode might affect the wider economy as many suspect the equity bubble has yet to fully deflate. We'll bring you the key levels, trading statements, price action and other developments as they happen. Here’s a summary of market action Friday and today, with... https://www.scmp.com/business/companies/article/1855900/china-markets-live-early-calls-price-forecasts-and-analyst-views?utm_source=rss_feed https://www.scmp.com/business/companies/article/1855900/china-markets-live-early-calls-price-forecasts-and-analyst-views?utm_source=rss_feed Mon, 07 Sep 2015 00:00:00 +0000 US Treasury Secretary Jacob Lew says the United States will hold China responsible for the political and economic impact of its currency policies after last month’s yuan devaluation. “They have to understand, and I make this point to them quite clearly, that there’s an economic and a political reality to things like exchange rates,” Lew said in a CNBC television interview that aired on Thursday. “They need to understand that they signal their intentions by the actions they take and the way they... https://www.scmp.com/news/china/diplomacy-defence/article/1855205/us-says-it-will-hold-china-accountable-its-exchange?utm_source=rss_feed https://www.scmp.com/news/china/diplomacy-defence/article/1855205/us-says-it-will-hold-china-accountable-its-exchange?utm_source=rss_feed Fri, 04 Sep 2015 02:52:57 +0000 Welcome to the SCMP's live markets blog. The intense volatility of recent weeks has every chance of remaining the core underlying theme of activity. Investors are increasingly focused the broader question of how this episode might affect the wider economy as many suspect the equity bubble has yet to fully deflate. We'll bring you the key levels, trading statements, price action and other developments as they happen. Here’s a summary of market action today and overnight:  After losing ground... https://www.scmp.com/news/china/economy/article/1852937/china-markets-live-early-calls-price-forecasts-and-analyst-views?utm_source=rss_feed https://www.scmp.com/news/china/economy/article/1852937/china-markets-live-early-calls-price-forecasts-and-analyst-views?utm_source=rss_feed Thu, 27 Aug 2015 00:00:15 +0000 Most bouts of global market volatility in recent years have featured one constant: the US dollar strengthens as investors clamour for the perceived safety of US assets such as Treasuries. By contrast, over the last two previous trading days, the dollar lost 4.0 per cent against the yen, while dropping to a seven-month low versus the euro on Monday, as world stock markets slumped and emerging market currencies plummeted. The dollar’s weakness may continue in the short term, but analysts expect... https://www.scmp.com/business/markets/article/1852653/us-dollar-fails-get-usual-safety-bid-market-volatility?utm_source=rss_feed https://www.scmp.com/business/markets/article/1852653/us-dollar-fails-get-usual-safety-bid-market-volatility?utm_source=rss_feed Wed, 26 Aug 2015 03:18:35 +0000 Welcome to the SCMP's live markets blog. The intense volatility of recent weeks has every chance of remaining the core underlying theme of activity. Investors are increasingly focused the broader question of how this episode might affect the wider economy as many suspect the equity bubble has yet to fully deflate. We'll bring you the key levels, trading statements, price action and other developments as they happen. Here’s a summary of market action:  Chinese markets whip-sawed by sharp... https://www.scmp.com/news/china/economy/article/1852635/china-markets-live-early-calls-price-forecasts-and-analyst-views?utm_source=rss_feed https://www.scmp.com/news/china/economy/article/1852635/china-markets-live-early-calls-price-forecasts-and-analyst-views?utm_source=rss_feed Wed, 26 Aug 2015 00:00:15 +0000 The People's Bank of China set the trading price for the yuan lower on Tuesday, the first time the currency has fallen over the past 8 days. The mid-price was fixed at 6.3987 to the dollar, weaker by 125 basis points from the previous day when it was fixed at 6.3862. The onshore yuan finished trading Monday at 6.4041. The yuan was devalued by the PBOC on August 11, depreciated on Augsut 12 and 13 and the fix has risen since. https://www.scmp.com/business/markets/article/1852335/chinas-pboc-fixes-yuan-down-first-time-8-days?utm_source=rss_feed https://www.scmp.com/business/markets/article/1852335/chinas-pboc-fixes-yuan-down-first-time-8-days?utm_source=rss_feed Tue, 25 Aug 2015 01:42:46 +0000 Welcome to the SCMP's live markets blog. The intense volatility of recent weeks has every chance of remaining the core underlying theme of activity. Investors are increasingly focused the broader question of how this episode might affect the wider economy as many suspect the equity bubble has yet to fully deflate. We'll bring you the key levels, trading statements, price action and other developments as they happen.   4:45pm: Dominic Rossi, Chief Investment Officer, Global, Fidelity Worldwide... https://www.scmp.com/news/china/economy/article/1852321/china-markets-live-early-calls-price-forecasts-and-analyst-views?utm_source=rss_feed https://www.scmp.com/news/china/economy/article/1852321/china-markets-live-early-calls-price-forecasts-and-analyst-views?utm_source=rss_feed Tue, 25 Aug 2015 00:00:30 +0000 The unexpected devaluation of the yuan precipitated a sell-off in emerging market stocks by jittery global investors on fears it could tip many economies into recession as it did in the 1990s. But worries about such a crisis seem a bit far-fetched. Strategists in Jefferies concede emerging market equities “have entered a ‘riot and revulsion phase’” but reckon the situation has not reached the threshold of a crisis. “There is an opportunity to distinguish between cyclical economic slowdowns such... https://www.scmp.com/business/markets/article/1852066/em-crisis-due-yuan-devaluations-seems-overflown-says-jefferies?utm_source=rss_feed https://www.scmp.com/business/markets/article/1852066/em-crisis-due-yuan-devaluations-seems-overflown-says-jefferies?utm_source=rss_feed Mon, 24 Aug 2015 04:30:30 +0000 People’s Bank of China set the mid-price of the yuan at 6.3862 to the dollar on Monday, up 2 basis points from the previous day's 6.3864 and compared with Friday's onshore yuan close at 6.3887. https://www.scmp.com/business/markets/article/1852040/chinas-pboc-sets-firmer-mid-price-7th-straight-day?utm_source=rss_feed https://www.scmp.com/business/markets/article/1852040/chinas-pboc-sets-firmer-mid-price-7th-straight-day?utm_source=rss_feed Mon, 24 Aug 2015 01:15:00 +0000 Welcome to the SCMP's live markets blog. The intense volatility of recent weeks has every chance of remaining the core underlying theme of activity. Investors are increasingly focused the broader question of how this episode might affect the wider economy as many suspect the equity bubble has yet to fully deflate. We'll bring you the key levels, trading statements, price action and other developments as they happen. Watch: 'Black Monday' hits China stock markets as yearly gains in Shanghai... https://www.scmp.com/news/china/economy/article/1851825/china-markets-live-early-calls-price-forecasts-and-analyst-views?utm_source=rss_feed https://www.scmp.com/news/china/economy/article/1851825/china-markets-live-early-calls-price-forecasts-and-analyst-views?utm_source=rss_feed Sun, 23 Aug 2015 23:30:00 +0000 Asian currencies will continue to ride a downbound train, railroaded by China's decision to allow the yuan to devalue and permit more flexibility in the way it trades, and a Federal Reserve which, though mindful of the disinflationary consequences of a weaker yuan, surely cannot leave an impression that US monetary policy is "made in China". In truth, China's currency moves have elicited a degree of understanding from the Fed and others. "Obviously, if the Chinese economy is weaker than maybe... https://www.scmp.com/business/markets/article/1851876/asian-currencies-railroaded-pboc-federal-reserve-policy-decisions?utm_source=rss_feed https://www.scmp.com/business/markets/article/1851876/asian-currencies-railroaded-pboc-federal-reserve-policy-decisions?utm_source=rss_feed Sun, 23 Aug 2015 08:48:31 +0000 The State Council said on Sunday that it will allow China’s pension fund to invest up to 30 per cent of its total 3.5 trillion yuan in net assets in equities and stocks, a likely bid to support the flagging market that billions of yuan in injected liquidity over the past week has failed to revive. The much anticipated move from the top decision-making body was aimed at boosting returns at the fund, which has so far been limited to low-yielding treasury notes and bank deposits, Xinhua news agency... https://www.scmp.com/news/china/economy/article/1851836/bumpy-road-china-stocks-pension-fund-gets-investment-go-ahead?utm_source=rss_feed https://www.scmp.com/news/china/economy/article/1851836/bumpy-road-china-stocks-pension-fund-gets-investment-go-ahead?utm_source=rss_feed Sun, 23 Aug 2015 07:30:15 +0000 The People's Bank of China set the mid-price for the yuan at 6.3864 to the dollar on Friday as the currency rose for the 6th day in a row following its shock devaluation last week. The mid-price fix on Thursday was at 6.3915. The onshore spot yuan closed at 6.3875 on Thursday.  The onshore yuan traded at 6.3912 to the dollar, weaker from the previous close at 6.3875 previous day. Offshore yuan traded at 6.4424 to the dollar, down from the previous close at 6.4385 on previous day. https://www.scmp.com/news/china/economy/article/1851342/chinas-pboc-sets-mid-price-yuan-63864-dollar-currency-6th?utm_source=rss_feed https://www.scmp.com/news/china/economy/article/1851342/chinas-pboc-sets-mid-price-yuan-63864-dollar-currency-6th?utm_source=rss_feed Fri, 21 Aug 2015 01:30:15 +0000 Welcome to the SCMP's live markets blog. The intense volatility of recent weeks has every chance of remaining the core underlying theme of activity. Investors are increasingly focused the broader question of how this episode might affect the wider economy as many suspect the equity bubble has yet to fully deflate. We'll bring you the key levels, trading statements, price action and other developments as they happen.   4:09pm: The Hang Seng Index finished 1.53 per cent lower at 22,409.62. The... https://www.scmp.com/news/china/economy/article/1851333/china-markets-live-early-calls-price-forecasts-and-analyst-views?utm_source=rss_feed https://www.scmp.com/news/china/economy/article/1851333/china-markets-live-early-calls-price-forecasts-and-analyst-views?utm_source=rss_feed Thu, 20 Aug 2015 23:45:00 +0000 Beijing will not devalue the yuan much more as further cheapening of the currency may not help boost exports and might have adverse ramifications, said Hong Kong's financial services chief. "The level of devaluation last week was small compared with other currencies such as the Korean won or the Malaysian ringgit, which have devalued by 10 to 20 per cent against the US dollar in recent months. I do not expect Beijing to devalue the yuan substantially in the near future as that may create more... https://www.scmp.com/business/global-economy/article/1851301/yuan-unlikely-fall-further-says-hong-kongs-financial?utm_source=rss_feed https://www.scmp.com/business/global-economy/article/1851301/yuan-unlikely-fall-further-says-hong-kongs-financial?utm_source=rss_feed Thu, 20 Aug 2015 17:58:30 +0000 The International Monetary Fund extended the effective period of the current Special Drawing Rights basket by nine months, granting more time to its executive members to consider whether or not to add the yuan in the reserve currency basket. The proposal was submitted on August 4 in a 63-page paper that proposed extending the eligibility period of the current basket – which expires this year – until the end of September 2016. The IMF yesterday announced that it has approved the proposal last... https://www.scmp.com/business/markets/article/1851073/imf-defers-addition-chinas-yuan-currency-basket-until-october-2016?utm_source=rss_feed https://www.scmp.com/business/markets/article/1851073/imf-defers-addition-chinas-yuan-currency-basket-until-october-2016?utm_source=rss_feed Thu, 20 Aug 2015 05:30:45 +0000 China’s devaluation of the yuan exposes an undefended flank in the Bank of Japan’s efforts to jolt its flagging economy out of decades of deflation, which rely heavily on a solid pick-up in overseas demand. A growing number of Japan’s central bankers are privately voicing concern that the problems behind China’s currency move will hit Asian demand harder than expected, threatening a Japanese export rebound they hope will stave off the need for another splurge of monetary easing. Since April 2013... https://www.scmp.com/business/global-economy/article/1851054/doubts-over-chinese-yuan-puts-bank-japan-bind?utm_source=rss_feed https://www.scmp.com/business/global-economy/article/1851054/doubts-over-chinese-yuan-puts-bank-japan-bind?utm_source=rss_feed Thu, 20 Aug 2015 04:33:26 +0000 The People’s Bank of China set the mid-price of the yuan at 6.3915 to the dollar as the currency rose for the fifth day in a row after its surprise devaluation and depreciation nearly all of last week. The yuan strengthened by 48 basis points from the previous day's mid-price at 6.3963. The onshore yuan closed on Wednesday at 6.3945 to the dollar. The onshore yuan (CNY) traded at 6.3972 to the dollar, weaker by 0.01 per cent from previous close at 6.3956 on Wednesday close. Offshore yuan (CNH)... https://www.scmp.com/news/china/economy/article/1851017/chinas-pboc-sets-yuan-mid-price-63915-currency-fifth-straight-day?utm_source=rss_feed https://www.scmp.com/news/china/economy/article/1851017/chinas-pboc-sets-yuan-mid-price-63915-currency-fifth-straight-day?utm_source=rss_feed Thu, 20 Aug 2015 01:15:45 +0000 Welcome to the SCMP's live markets blog. The intense volatility of recent weeks has every chance of remaining the core underlying theme of activity. Investors are increasingly focused the broader question of how this episode might affect the wider economy as many suspect the equity bubble has yet to fully deflate. We'll bring you the key levels, trading statements, price action and other developments as they happen.   4:12pm: A last minute upwards surge was still not enough to avert the Hang... https://www.scmp.com/news/china/economy/article/1851007/china-markets-live-early-calls-price-forecasts-and-analyst-views?utm_source=rss_feed https://www.scmp.com/news/china/economy/article/1851007/china-markets-live-early-calls-price-forecasts-and-analyst-views?utm_source=rss_feed Thu, 20 Aug 2015 00:00:15 +0000 Hong Kong's status as the world's foremost yuan hub could be threatened in two years as trade in the currency moves to the mainland, HSBC says. If the yuan achieved full convertibility by 2017, Hong Kong would face new challenges to retain the top spot as settlement in the city would drop significantly, according to the bank. "Hong Kong will maintain its leading position until 2017, by which time the yuan is expected to be fully convertible. After that, subject to China's capital account... https://www.scmp.com/business/markets/article/1850987/hong-kongs-yuan-hub-status-under-threat?utm_source=rss_feed https://www.scmp.com/business/markets/article/1850987/hong-kongs-yuan-hub-status-under-threat?utm_source=rss_feed Wed, 19 Aug 2015 18:45:45 +0000 With  turbulence in the yuan, Chinese airlines may be heading towards more renminbi-based financing – be it debt or equity – for   aircraft bills as they seek to mitigate  high currency risks. China Southern, which is due to report results at the end of the month,   is now faced with the burden of having to generate more revenue in renminbi to repay its 105 billion yuan (HK$127 billion) worth of US dollar-based debts after last week’s surprise devaluation of the Chinese currency by 3 per cent –... https://www.scmp.com/business/markets/article/1850733/yuan-financing-rise-chinas-airlines?utm_source=rss_feed https://www.scmp.com/business/markets/article/1850733/yuan-financing-rise-chinas-airlines?utm_source=rss_feed Wed, 19 Aug 2015 03:00:45 +0000 The People’s Bank of China set the yuan's mid-price at 6.3963 to the dollar on Wednesday as the currency rose for the fourth day in a row, after last week's surprise devaluation rocked global financial markets. The yuan is stronger by 3 basis points from the mid-price on Tuesday at 6.3966. The onshore yuan closed on Tuesday at 6.3928. https://www.scmp.com/news/china/economy/article/1850722/chinas-pboc-sets-yuan-mid-price-4th-straight-day-63963-dollar?utm_source=rss_feed https://www.scmp.com/news/china/economy/article/1850722/chinas-pboc-sets-yuan-mid-price-4th-straight-day-63963-dollar?utm_source=rss_feed Wed, 19 Aug 2015 01:15:45 +0000 The target price of some Chinese corporates that hold foreign currency debt, in particular property developers and some industrial firms, are facing downward pressure as their debt burden is seen rising and margins get squeezed following last week’s yuan devaluation. The 42 rated Chinese property developers tracked by rating agency Moody’s, for example, had around 35.5 per cent of their debt denominated in non-renminbi currencies on average, including offshore bonds and bank loans, in their debt... https://www.scmp.com/business/companies/article/1850721/chinese-shares-under-rerating-pressure-following-yuan?utm_source=rss_feed https://www.scmp.com/business/companies/article/1850721/chinese-shares-under-rerating-pressure-following-yuan?utm_source=rss_feed Wed, 19 Aug 2015 01:00:30 +0000 Welcome to the SCMP's live markets blog. The intense volatility of recent weeks has every chance of remaining the core underlying theme of activity. Investors are increasingly focused the broader question of how this episode might affect the wider economy as many suspect the equity bubble has yet to fully deflate. We'll bring you the key levels, trading statements, price action and other developments as they happen.   4:17pm: The Hang Seng Index drifts a little further to close at 23,167.85,... https://www.scmp.com/news/china/economy/article/1850711/china-markets-live-early-calls-price-forecasts-and-analyst-views?utm_source=rss_feed https://www.scmp.com/news/china/economy/article/1850711/china-markets-live-early-calls-price-forecasts-and-analyst-views?utm_source=rss_feed Tue, 18 Aug 2015 23:45:45 +0000 The unexpected devaluation of China's yuan is likely to accelerate buying interest for overseas property among mainland Chinese to protect their wealth, but capital will shift away from emerging markets to avoid rising currency risks. Despite the fact that owners of Asian properties have seen their wealth sharply reduced by an escalation in currency risks in the region, industry experts say there has not been any panic selling yet. "Mainlanders mostly buy overseas homes for immigration, for... https://www.scmp.com/property/hong-kong-china/article/1850576/chinas-yuan-devaluation-speed-outbound-real-estate?utm_source=rss_feed https://www.scmp.com/property/hong-kong-china/article/1850576/chinas-yuan-devaluation-speed-outbound-real-estate?utm_source=rss_feed Tue, 18 Aug 2015 16:30:30 +0000 The People’s Bank of China set the mid-price for the yuan at 6.3966 to the US dollar on Tuesday as the currency gained for the third day running and one week after its surprise devaluation last week. The mid-price on Monday was at 6.3969. The onshore yuan settled on Monday at 6.3947. The onshore yuan (CNY) traded at 6.4111 to the dollar at 1 pm, weaker by 0.27 per cent from the Monday close. The offshore yuan(CNH) traded at 6.4475 to the dollar at 1 pm,  weaker by 0.06 per cent from the Monday... https://www.scmp.com/news/china/economy/article/1850392/chinas-pboc-sets-yuan-mid-price-63966-dollar-fractionally-3rd-day?utm_source=rss_feed https://www.scmp.com/news/china/economy/article/1850392/chinas-pboc-sets-yuan-mid-price-63966-dollar-fractionally-3rd-day?utm_source=rss_feed Tue, 18 Aug 2015 01:30:00 +0000 Welcome to the SCMP's live markets blog. The intense volatility of recent weeks has every chance of remaining the core underlying theme of activity. Investors are increasingly focused the broader question of how this episode might affect the wider economy as many suspect the equity bubble has yet to fully deflate. We'll bring you the key levels, trading statements, price action and other developments as they happen.   4:11pm: The Hang Seng Index closed at 23,474.97, down 1.43 per cent or 339.68... https://www.scmp.com/news/china/economy/article/1850384/china-markets-live-early-calls-price-forecasts-and-analyst-views?utm_source=rss_feed https://www.scmp.com/news/china/economy/article/1850384/china-markets-live-early-calls-price-forecasts-and-analyst-views?utm_source=rss_feed Tue, 18 Aug 2015 00:00:30 +0000