https://www.scmp.com/rss/323086/feed en https://assets.i-scmp.com/static/img/icons/scmp-meta-1200x630.png https://www.scmp.com The Chinese yuan is set to record, after what has been a volatile trading year, its biggest annual drop in value since 1994. However, as 2017 dawns experts generally agree the currency of the world’s second largest economy is set to end the “6 era” – a period with an exchange rate between 6 and 7 against the US dollar – for the first time since April 2008, and enter a new “7 era”. 2016 had started in dramatic fashion, with the offshore yuan tumbling nearly 600 basis points on January 4, and the... https://www.scmp.com/business/article/2058260/yuan-ends-2016-biggest-annual-loss-1994?utm_source=rss_feed https://www.scmp.com/business/article/2058260/yuan-ends-2016-biggest-annual-loss-1994?utm_source=rss_feed Fri, 30 Dec 2016 13:05:07 +0000 A state-owned Chinese coal firm has missed a repayment on a bond for the second time this year, amid increasing concerns that defaults may surge as trillions of yuan in onshore bonds mature next year. Sichuan Coal Industry Group, owned by the government of the south-western Sichuan province, failed to repay the principal and interest on 1 billion yuan in three-year private placement notes (PPN) with a 7.5 per cent coupon due on December 25. The company’s previous default, six months ago, was... https://www.scmp.com/business/companies/article/2057681/state-owned-sichuan-coal-defaults-bond-second-time?utm_source=rss_feed https://www.scmp.com/business/companies/article/2057681/state-owned-sichuan-coal-defaults-bond-second-time?utm_source=rss_feed Thu, 29 Dec 2016 11:35:59 +0000 Mainland China’s foreign exchange market showed substantially increased activity last month as faster yuan depreciation boosted demand for foreign currencies and led more businesses to tap into foreign exchange derivative markets for risk hedging. Foreign exchange market turnover surged 42.33 per cent last month compared with October to a record US$2.32 trillion, State Administration of Foreign Exchange data released on Friday showed. Turnover from January to last month was US$18.05 trillion,... https://www.scmp.com/business/money/money-news/article/2057263/chinas-forex-market-turnover-surged-highlighting-capital?utm_source=rss_feed https://www.scmp.com/business/money/money-news/article/2057263/chinas-forex-market-turnover-surged-highlighting-capital?utm_source=rss_feed Mon, 26 Dec 2016 08:43:35 +0000 Financial stocks led Hong Kong’s main share index to a lower close on Thursday, with the weakness expected to continue, according to analysts. The benchmark Hang Seng Index closed down 0.8 per cent, or 173.6 points, at 21,636.2 points. The H-share index lost 1.41 per cent, or 131.39 points, to 9,200.24 points. Chinese financial stocks led the losses. Ping An Insurance dropped 1.53 per cent to HK$38.60 while China Construction Bank finished down 1.27 per cent at HK$5.45. “We expect the Hang Seng... https://www.scmp.com/business/companies/article/2056490/hong-kong-stocks-set-open-lower-after-us-retreat?utm_source=rss_feed https://www.scmp.com/business/companies/article/2056490/hong-kong-stocks-set-open-lower-after-us-retreat?utm_source=rss_feed Thu, 22 Dec 2016 01:17:21 +0000 Chinese yuan reversed earlier losses and managed to strengthen late on Wednesday despite the central bank weakening the reference rate. Offshore yuan traded in Hong Kong was quoted at 6.9304 per US dollar in the evening session, 0.11 per cent stronger than the previous day, after hitting a low of 6.9480 in the morning. Onshore yuan in Shanghai traded at 6.9490 against the US dollar, 0.03 per cent stronger than a day earlier. The People’s Bank of China on Wednesday set the yuan reference point... https://www.scmp.com/business/global-economy/article/2056292/chinese-yuan-weakens-after-pboc-sets-daily-reference-rate?utm_source=rss_feed https://www.scmp.com/business/global-economy/article/2056292/chinese-yuan-weakens-after-pboc-sets-daily-reference-rate?utm_source=rss_feed Wed, 21 Dec 2016 04:38:52 +0000 The Chinese central bank governor Zhou Xiaochuan has described the country’s measures for limiting the yuan’s outflows as a temporary means for preventing capital flight and restoring calm to the currency markets, said the Hong Kong Monetary Authority’s chief executive Norman Chan. “Governor Zhou said the measures are for the short term,” Chan said in Beijing, after leading a visit by the Hong Kong Association of Bankers to the Chinese central bank. “When the market condition becomes stable, the... https://www.scmp.com/business/money/article/2055798/chinas-currency-curbs-merely-temporary-stem-yuans-outflow-central?utm_source=rss_feed https://www.scmp.com/business/money/article/2055798/chinas-currency-curbs-merely-temporary-stem-yuans-outflow-central?utm_source=rss_feed Mon, 19 Dec 2016 11:30:45 +0000 With China’s bond market in unprecedented turmoil, many Chinese companies have cancelled or put off their plans to issue debt, and even the normally popular government bond auctions have been met with muted enthusiasm. Analysts see no immediate relief from the tighter liquidity conditions widely blamed for the recent tumble in bond prices. In the three days from December 14 to 16, up to 20 companies cancelled bond issuance worth more than 18 billion yuan, according to data from China Central... https://www.scmp.com/business/china-business/article/2055582/chinese-borrowers-rush-cancel-bond-issuance-amid-market?utm_source=rss_feed https://www.scmp.com/business/china-business/article/2055582/chinese-borrowers-rush-cancel-bond-issuance-amid-market?utm_source=rss_feed Sun, 18 Dec 2016 10:19:55 +0000 China’s bond market saw a record sell-off on Thursday, unnerved after the US Federal Reserve foreshadowed a faster-than-expected pace of interest rate increases in 2017. Benchmark 10-year treasury futures for March delivery closed 1.81 per cent lower, the biggest drop since they resumed trading three years ago. They were down as much as 2 per cent intraday, the maximum change allowed. Five-year treasury futures for March delivery ended 1.16 per cent lower, after tumbling to their permissible... https://www.scmp.com/business/article/2054800/chinas-government-bonds-tumble-after-us-feds-hawkish-inflation-outlook?utm_source=rss_feed https://www.scmp.com/business/article/2054800/chinas-government-bonds-tumble-after-us-feds-hawkish-inflation-outlook?utm_source=rss_feed Thu, 15 Dec 2016 04:15:00 +0000 Chinese yuan tumbled in the onshore market on Thursday after the US Federal Reserve raised the interest rate overnight and made a more hawkish statement than expected by foreshadowing more interest rates hikes in 2017. Onshore yuan traded in Shanghai opened nearly 300 basis points, or 0.43 per cent, lower at 6.9350 per US dollar and hit an intraday low of 6.9366 against the greenback at one point, a fresh new low in over eight years. It was quoted at 6.9335 per US dollar in evening trading on... https://www.scmp.com/business/money/article/2054786/yuan-tumbles-testing-7-us-dollar-level-after-hawkish-fed-statement?utm_source=rss_feed https://www.scmp.com/business/money/article/2054786/yuan-tumbles-testing-7-us-dollar-level-after-hawkish-fed-statement?utm_source=rss_feed Thu, 15 Dec 2016 02:50:51 +0000 Hong Kong saw its borrowing costs in the money market surge to a near eight-year high, with the US Federal Reserve almost certain to raise the interest rate later this week. The overwhelming probability that the Federal Open Market Committee will increase the benchmark rate raised market concerns over capital outflows due to the rising allure of US assets. The benchmark one-month Hong Kong Interbank Offered Rate, or Hibor, surged to 0.624 per cent on Tuesday, the highest level in near eight... https://www.scmp.com/business/banking-finance/article/2054264/hong-kong-borrowing-costs-surge-near-8-year-high-fed-rate?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/2054264/hong-kong-borrowing-costs-surge-near-8-year-high-fed-rate?utm_source=rss_feed Tue, 13 Dec 2016 11:41:33 +0000 China’s government bond market saw a record sell-off on Monday, extending losses since the start of October. Bonds are under intense pressure as Beijing continues to tighten regulations in a bid to deleverage the market, and as a near-certain interest rate increase by the US Federal Reserve looms this week. China’s 10-year treasury futures for March delivery, the most actively traded contract, plunged by 1.05 per cent on the China Financial Futures Exchange, the biggest one-day drop since the... https://www.scmp.com/business/banking-finance/article/2053961/chinese-government-bonds-see-record-sell-amid-tightening?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/2053961/chinese-government-bonds-see-record-sell-amid-tightening?utm_source=rss_feed Mon, 12 Dec 2016 12:38:51 +0000 China’s troubled state-owned steelmaker Sinosteel has agreed terms for its debt-for-equity swap plan after two years of negotiations, marking the first such restructuring deal involving a central government-owned enterprise. Sinosteel has signed agreements with six Chinese state-owned banks including Bank of China and Bank of Communications in regards to restructuring debt through a debt-for-equity swap, according to a statement released by the Bank of China on its website on Friday. We still... https://www.scmp.com/business/companies/article/2053353/troubled-sinosteel-becomes-first-central-government-owned-company?utm_source=rss_feed https://www.scmp.com/business/companies/article/2053353/troubled-sinosteel-becomes-first-central-government-owned-company?utm_source=rss_feed Fri, 09 Dec 2016 14:50:26 +0000 The sharp depreciation of the yuan dampened investors’ appetite for Chinese sovereign debt when a batch of yuan-denominated government bonds was issued yesterday in the offshore market. China’s Ministry of Finance auctioned 10 billion yuan of sovereign bonds to institutional investors on Thursday in Hong Kong and received total bids of 23 billion yuan. This makes the bid-to-cover ratio 2.3 times, significantly lower than the 3.2 times at an auction in June, when near 44.5 billion yuan of bids... https://www.scmp.com/business/banking-finance/article/2053278/fears-long-term-yuan-weakness-dampens-investors-appetite?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/2053278/fears-long-term-yuan-weakness-dampens-investors-appetite?utm_source=rss_feed Fri, 09 Dec 2016 09:17:54 +0000 Hong Kong’s stock market closed lower on Friday led by casino shares which were hit hard after the South China Morning Post’s exclusive report on the upcoming limit on UnionPay users’ ATM withdrawals in Macau. The Hang Seng Index dropped 0.44 per cent to close at 22760.9 on Friday, while the Hang Seng China Enterprises Index was down 0.29 per cent to 9,867.9. Casinos were the worst performers, with Sands China, one of the most heavily traded stocks of the day, dropping 7.87 per cent to HK$34.55... https://www.scmp.com/business/global-economy/article/2053176/hong-kong-stocks-set-open-slightly-casino-shares-could-drop?utm_source=rss_feed https://www.scmp.com/business/global-economy/article/2053176/hong-kong-stocks-set-open-slightly-casino-shares-could-drop?utm_source=rss_feed Fri, 09 Dec 2016 01:26:41 +0000 Hong Kong stocks closed higher on Thursday as a global market recovery lifted risk appetite and China’s trade data for last month pointed to economic stability. The Hang Seng Index ended 0.27 per cent higher at 22,861.84 and the Hang Seng China Enterprises Index (H shares) gained 0.68 per cent to 9,896.82. HSBC Holdings remained in the spotlight and was the day’s most heavily traded stock. The stock opened more than 1.3 per cent higher on Thursday morning but quickly reversed gains and slipped... https://www.scmp.com/business/companies/article/2052842/hong-kong-and-mainland-stocks-set-open-higher?utm_source=rss_feed https://www.scmp.com/business/companies/article/2052842/hong-kong-and-mainland-stocks-set-open-higher?utm_source=rss_feed Thu, 08 Dec 2016 01:21:42 +0000 Last month’s shock election of Donald Trump as US president sent global bond yields skyrocketing, prompting a widespread view that the 30-year bull run in debt markets is finally at an end. Emerging market bonds, which had benefited from investors’ appetite for yield in the past, have been left reeling by a tidal wave of capital outflows. The yield on the benchmark 10-year US Treasury bond, which moves inversely to its price, hit 2.39 on Tuesday after peaking at 2.45 per cent last week, after... https://www.scmp.com/business/global-economy/article/2052640/end-30-year-bull-run-bonds-sparks-record-capital-outflows?utm_source=rss_feed https://www.scmp.com/business/global-economy/article/2052640/end-30-year-bull-run-bonds-sparks-record-capital-outflows?utm_source=rss_feed Wed, 07 Dec 2016 23:16:07 +0000 The borrowing cost of yuan in the offshore market in Hong Kong surged on Monday, highlighting the significantly tightened liquidity after China’s central bank made moves to moderate the yuan’s depreciation. The overnight Hong Kong Interbank Offered Rate of the yuan (CNH Hibor) surged by 522 basis points to hit 12.3813 per cent, the highest level since September 13th. The rate has climbed for six days in a row. The 7-day CNH Hibor rate also rose 203 basis point to hit 9.0792 per cent, together... https://www.scmp.com/business/china-business/article/2051794/surging-yuan-hibor-highlight-tight-liquidity?utm_source=rss_feed https://www.scmp.com/business/china-business/article/2051794/surging-yuan-hibor-highlight-tight-liquidity?utm_source=rss_feed Mon, 05 Dec 2016 06:27:25 +0000 The Chinese yuan continued its weaking trend on the first day of the Shenzhen-Hong Kong Stock Connect, even as the Chinese authority tightened controls over capital outflow. The offshore yuan in Hong Kong extended its recent string of losses, falling 0.2 per cent to 6.8888 per US dollar as of 9.54 am in Asian trading hour. However, the onshore yuan in Shanghai managed to stay barely changed at 6.8894 per US dollar. The continued weakness of the yuan comes after the People’s Bank of China cut the... https://www.scmp.com/business/article/2051754/yuan-extends-slide-against-dollar-pboc-sets-daily-reference-rate-weaker?utm_source=rss_feed https://www.scmp.com/business/article/2051754/yuan-extends-slide-against-dollar-pboc-sets-daily-reference-rate-weaker?utm_source=rss_feed Mon, 05 Dec 2016 03:44:13 +0000 The latest restrictions over capital outflows from China should be seen as Beijing’s intention to tap the brakes on the pace of yuan depreciation, rather than drawing a line in the sand for a defence of the currency, according to experts. As the latest move to control capital outflows from China, the central bank will curb the amount of yuan that Chinese companies can remit outside the country, imposing a cap for the first time in more than two decades to stem the yuan’s outflow as the currency... https://www.scmp.com/business/money/markets-investing/article/2050880/dont-expect-u-turn-yuans-downtrend-pace?utm_source=rss_feed https://www.scmp.com/business/money/markets-investing/article/2050880/dont-expect-u-turn-yuans-downtrend-pace?utm_source=rss_feed Thu, 01 Dec 2016 14:25:02 +0000 China’s central bank will limit the amount of yuan that Chinese companies can remit outside the country, imposing a cap for the first time in more than two decades to stem the yuan’s outflows amid its 7 per cent decline this year. Non-financial companies domiciled in China will be limited to lending the equivalent of 30 per cent of the owners’ equity to an overseas company in yuan, according to a November 26 circular by the People’s Bank of China, a copy of which was obtained by the South China... https://www.scmp.com/business/banking-finance/article/2050744/chinas-central-bank-caps-yuans-outflow-stem-currencys-slump?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/2050744/chinas-central-bank-caps-yuans-outflow-stem-currencys-slump?utm_source=rss_feed Thu, 01 Dec 2016 04:15:45 +0000 China’s benchmark lending rates have risen sharply, increasing the cost of borrowing capital and sending the economy into a cycle of implicit monetary tightening, while the country’s currency plumbs daily lows. The price of 10-year government bond futures for March delivery fell by a record 0.71 per cent on Tuesday before declining a second day by another 0.49 per cent on Wednesday. The price has dropped by nearly 3 per cent since late October. The yield on the benchmark 10-year bond has risen... https://www.scmp.com/business/banking-finance/article/2050522/chinas-borrowing-costs-surge-sending-economy-cycle-implicit?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/2050522/chinas-borrowing-costs-surge-sending-economy-cycle-implicit?utm_source=rss_feed Wed, 30 Nov 2016 14:56:39 +0000 Total deposits of Chinese yuan in Hong Kong in October dropped 0.4 per cent month on month to 662 billion yuan, according to statistics published by the Hong Kong Monetary Authority (HKMA) on Wednesday. The decline comes after yuan deposits posted a 1.9 per cent rebound in September, following a decline that lasted three consecutive months from June this year. The most recent monthly decline may be attributable to the fact that investors are becoming more cautious on the currency’s prospects and... https://www.scmp.com/business/money/article/2050519/chinese-yuan-deposits-hong-kong-dipped-04pc-october-previous-month?utm_source=rss_feed https://www.scmp.com/business/money/article/2050519/chinese-yuan-deposits-hong-kong-dipped-04pc-october-previous-month?utm_source=rss_feed Wed, 30 Nov 2016 14:10:46 +0000 Hong Kong authorities unveiled a proposal for a potential bond market connect scheme with the mainland to broaden bond investment options for retail investors, at a time when stock markets on both sides of the border are set to be more closely linked with the newly announced Shenzhen-Hong Kong Stock Connect. A report titled “Proposal on the Mainland-Hong Kong Bond Market Connect” was released on Tuesday by the Financial Services Development Council (FSDC), an advisory body established by Hong... https://www.scmp.com/business/money/investment-products/article/2050184/hong-kong-eyes-retail-bond-connect-scheme?utm_source=rss_feed https://www.scmp.com/business/money/investment-products/article/2050184/hong-kong-eyes-retail-bond-connect-scheme?utm_source=rss_feed Tue, 29 Nov 2016 14:15:15 +0000 Hong Kong’s ultra rich are not only getting richer but also growing in number, with the number of ultra high net worth people in the city rising to 1,800 or by 14.7 per cent, from a year ago, a new report said. According to the latest Global Wealth Report published by Credit Suisse, mainland China was ranked second after the US in the number of ultra high net worth individuals, with their ranks rising by 6.2 per cent to 11,000 individuals so far in 2016. That also represented a 100-fold rise... https://www.scmp.com/business/money/wealth/article/2048648/hong-kongs-ultra-rich-sees-growth-population-assets?utm_source=rss_feed https://www.scmp.com/business/money/wealth/article/2048648/hong-kongs-ultra-rich-sees-growth-population-assets?utm_source=rss_feed Wed, 23 Nov 2016 13:20:48 +0000 With the launch of the Shenzhen-Hong Kong Stock Connect approaching, some observers now expect the next step in Hong Kong’s financial links to the mainland could come through commodities trading. Earlier this month, Charles Li Xiaojia, the chief executive of Hong Kong Exchanges and Clearing, said the bourse was likely to explore similar schemes for metals, bonds and initial share sales. However, despite the idea being highlighted in the Hong Kong stock exchange’s 2016-18 strategic plan, the... https://www.scmp.com/business/commodities/article/2047731/chinese-commodity-futures-turmoil-casts-doubt-possible-trading?utm_source=rss_feed https://www.scmp.com/business/commodities/article/2047731/chinese-commodity-futures-turmoil-casts-doubt-possible-trading?utm_source=rss_feed Sun, 20 Nov 2016 13:48:01 +0000 The sharp depreciation in the Chinese yuan has broken the market’s expectation that monetary authorities will step in when the currency falls below the psychological level of 6.8 per US dollar. Most analysts now believe that China’s central bank will tolerate an even weaker yuan as long as it does not trigger market turmoil. Another idea taking hold is that it’s hard to reverse the declining trend before the country’s economic fundamentals improve. The onshore and offshore yuan both weakened by... https://www.scmp.com/business/money/article/2047322/whats-next-traders-ask-after-pboc-stays-sidelines-yuan-weakens-past?utm_source=rss_feed https://www.scmp.com/business/money/article/2047322/whats-next-traders-ask-after-pboc-stays-sidelines-yuan-weakens-past?utm_source=rss_feed Fri, 18 Nov 2016 10:27:14 +0000 China has made several moves this year to reduce the risks posed by opaque wealth management products (WMPs) – one of the main sources of income for the shadow banking industry. However, as many companies, including those in distress, still view WMPs as a preferred form of financing, analysts say the measures as unlikely to have any great effect on their continued growth. “The proposed regulations, in their current form, are positive but represent changes at the margins, and are unlikely to lead... https://www.scmp.com/business/article/2046939/chinas-tightened-rules-wealth-management-products-having-little-effect?utm_source=rss_feed https://www.scmp.com/business/article/2046939/chinas-tightened-rules-wealth-management-products-having-little-effect?utm_source=rss_feed Thu, 17 Nov 2016 08:59:10 +0000 The Chinese yuan weakened in Asian afternoon trading on Friday after the central bank set its fixing rate below 6.8 per US dollar for the first time in more than six years. Both offshore and onshore yuan were trading below 6.8, a level regarded by officials and analysts as psychologically important. The decline, however, narrowed in afternoon trading. Offshore yuan traded in Hong Kong began to strengthen in the afternoon after plunging in earlier trading, up 0.22 per cent or 150 basis points to... https://www.scmp.com/business/markets/article/2045059/yuan-plunges-after-pboc-sets-fixing-below-68-first-time-2010?utm_source=rss_feed https://www.scmp.com/business/markets/article/2045059/yuan-plunges-after-pboc-sets-fixing-below-68-first-time-2010?utm_source=rss_feed Fri, 11 Nov 2016 01:53:25 +0000 Chinese stocks have entered bull market territory thanks to positive economic data with the Shanghai Composite Index climbing more than 20 per cent since January, but the positive sentiment didn’t stretch to Hong Kong markets which closed lower on Friday despite US stocks hitting record highs overnight. The Hang Seng Index finished the day down 1.35 per cent or 308.02 points to 22,531.09, while the Hang Seng China Enterprises Index dropped 1.18 per cent or 112.48 points to 9,433.37. The Shanghai... https://www.scmp.com/business/markets/article/2045045/hong-kong-set-open-lower-despite-us-stocks-hitting-record-highs?utm_source=rss_feed https://www.scmp.com/business/markets/article/2045045/hong-kong-set-open-lower-despite-us-stocks-hitting-record-highs?utm_source=rss_feed Fri, 11 Nov 2016 01:15:00 +0000 China’s futures brokers have been banned from providing margin financing, part of tighter measures aimed at cracking down speculation in the overheated financial market, according to a report in state-owned Shanghai Securities News. The move by the China Securities Regulatory Commission comes amid other sweeping measures by the country’s major commodities exchanges this week, six months after the government stepped in to try to deflate a speculative bubble in the market. On Wednesday, the... https://www.scmp.com/business/commodities/article/2044877/chinese-regulator-bans-futures-brokers-providing-margin?utm_source=rss_feed https://www.scmp.com/business/commodities/article/2044877/chinese-regulator-bans-futures-brokers-providing-margin?utm_source=rss_feed Thu, 10 Nov 2016 13:46:45 +0000 The Chinese yuan rebounded on Thursday morning after hitting a record low overnight when the US dollar shrugged off fears that had plagued markets ahead of Donald Trump’s victory in the presidential election. Offshore yuan traded in Hong Kong had clawed back 0.3 per cent to 6.8137 against the dollar as of 10.05am Thursday morning, after slumping more than 400 basis points overnight to hit 6.8384, a breach of the critical 6.8 level. It was the lowest level since the offshore yuan started trading... https://www.scmp.com/business/markets/article/2044720/offshore-yuan-rebounds-after-hitting-record-low-after-trump-victory?utm_source=rss_feed https://www.scmp.com/business/markets/article/2044720/offshore-yuan-rebounds-after-hitting-record-low-after-trump-victory?utm_source=rss_feed Thu, 10 Nov 2016 03:30:00 +0000 Hong Kong stocks rebounded on Thursday from sharp losses in the previous session, clawing back almost all the ground lost in a global sell-off that followed Republican candidate Donald Trump’s surprise rise to the White House. The Hang Seng Index rose 1.89 per cent per cent or 423.92 points to 22,839.11, while the Hang Seng China Enterprises Index moved up 1.78 per cent or 167.19 points to 9,545.85. The positive sentiment followed major drops on Wednesday, which saw Hong Kong shares plunge to... https://www.scmp.com/business/markets/article/2044696/hong-kong-stocks-set-open-higher-asian-markets-rebound?utm_source=rss_feed https://www.scmp.com/business/markets/article/2044696/hong-kong-stocks-set-open-higher-asian-markets-rebound?utm_source=rss_feed Thu, 10 Nov 2016 01:21:22 +0000 New official guidelines for a debt-for-equity swap programme designed as part of the solution to China’s alarmingly high leverage provide more questions than answers, according to analysts at Fitch. First proposed by Premier Li Keqiang in March this year, the debt-for-equity scheme is viewed as a priority for Chinese leaders to bring down soaring leverage in the corporate sector, which hit 169 per cent of gross domestic product in the first quarter. While debt-for-equity swaps could act as a... https://www.scmp.com/business/china-business/article/2044341/beijings-debt-equity-rules-pose-more-questions-answers-fitch?utm_source=rss_feed https://www.scmp.com/business/china-business/article/2044341/beijings-debt-equity-rules-pose-more-questions-answers-fitch?utm_source=rss_feed Wed, 09 Nov 2016 05:08:22 +0000 The US dollar slumped as the Republican presidential nominee Donald Trump showed signs of gaining an edge in today’s election. Offshore yuan traded in Hong Kong strengthened by 0.25 per cent to 6.7794 against the greenback in morning trading on Wednesday, before slipping back to 6.7882 as of 10.57 am. It closed Tuesday’s trading at 6.7983 at 6am, the weakest closing price on record. Onshore yuan is trading 0.1 per cent stronger at 6.7738 per US dollar in Shanghai. The People’s Bank of China on... https://www.scmp.com/business/markets/article/2044314/yuan-rallies-us-dollar-dragged-down-fears-trump-victory?utm_source=rss_feed https://www.scmp.com/business/markets/article/2044314/yuan-rallies-us-dollar-dragged-down-fears-trump-victory?utm_source=rss_feed Wed, 09 Nov 2016 03:37:49 +0000 The turmoil in Asia’s financial markets eased after knee-jerk sell-offs in stocks, currencies and commodities for safe haven assets gave way to a fresh look at the economic implications of Donald Trump in the White House. Benchmark equity indexes fell in every Asian market, while the price of gold marked the biggest gains since Britain’s Brexit vote in June. Mexico’s peso was the biggest loser among emerging market currencies, weakening against the US dollar because of Trump’s frequent comments... https://www.scmp.com/business/markets/article/2044288/hong-kong-markets-set-open-higher-us-election-result?utm_source=rss_feed https://www.scmp.com/business/markets/article/2044288/hong-kong-markets-set-open-higher-us-election-result?utm_source=rss_feed Wed, 09 Nov 2016 01:30:30 +0000 The yuan weakened towards its lowest level in six years with faster than expected capital outflows and the disappointing exports continuing to pressure the currency. Onshore yuan traded in Shanghai was quoted at 6.7797 per US dollar as of 11.08 am after hitting 6.7819, towards the lowest level in six years. Offshore yuan traded in Hong Kong was quoted at 6.7900 per US dollar. The People’s Bank of China cut the daily reference of the yuan by 0.14 per cent or 92 basis point to 6.7817 on Tuesday, a... https://www.scmp.com/business/article/2043961/disappointing-exports-and-fast-capital-outflows-drive-yuan-towards-six-year?utm_source=rss_feed https://www.scmp.com/business/article/2043961/disappointing-exports-and-fast-capital-outflows-drive-yuan-towards-six-year?utm_source=rss_feed Tue, 08 Nov 2016 05:05:32 +0000 Hong Kong and mainland stock markets closed higher on Tuesday hours before the US presidential election, after US indices notched up their biggest gains in eight months. The Hang Seng Index ended the day up 0.47 per cent or 108.07 points at 22,909.47, while the Hang Seng China Enterprises Index added 0.54 per cent or 51.61 points to 9,659.85. While the Hang Seng has risen three days in a row, the recent gains are “expected to be short-lived”, according to Zhao Wenli, the chief strategist at... https://www.scmp.com/business/markets/article/2043903/hong-kong-stocks-set-open-higher-lifted-us-rally?utm_source=rss_feed https://www.scmp.com/business/markets/article/2043903/hong-kong-stocks-set-open-higher-lifted-us-rally?utm_source=rss_feed Tue, 08 Nov 2016 01:29:20 +0000 The Ministry of Finance has withdrawn “implicit support” for the debt of entities linked to regional governments, making it clear that state-owned enterprises will not be in a position to benefit from a provincial government bailout. “The debt of enterprises owned by local governments, including financing vehicles, is not government debt,” the Ministry of Finance said in a statement released on Friday, “local governments will not assume responsibility for repayment of these borrowings.” Any... https://www.scmp.com/business/china-business/article/2043712/chinas-finance-ministry-tightens-no-bailout-policy-targeting?utm_source=rss_feed https://www.scmp.com/business/china-business/article/2043712/chinas-finance-ministry-tightens-no-bailout-policy-targeting?utm_source=rss_feed Mon, 07 Nov 2016 13:18:21 +0000 The yuan softened on Monday morning after the central bank cut its reference rate by the most in more than two weeks, amid expectations that data released later today will show the country’s foreign exchange reserves declined further in October. Offshore yuan traded in Hong Kong traded 0.13 per cent weaker at 6.7825 per US dollar as of 10.04 am on Monday. Onshore yuan was down 0.25 per cent at 6.7706 a dollar. The People’s Bank of China cut the yuan’s daily reference rate by 211 basis point to... https://www.scmp.com/business/markets/article/2043574/yuan-weakens-ahead-october-foreign-exchange-reserves-data?utm_source=rss_feed https://www.scmp.com/business/markets/article/2043574/yuan-weakens-ahead-october-foreign-exchange-reserves-data?utm_source=rss_feed Mon, 07 Nov 2016 03:30:59 +0000 Property stocks in Hong Kong slipped to three-month lows on Monday after the government’s decision to increase stamp duty, but the markets shrugged off the losses to move higher. The Hang Seng Index closed up 0.7 per cent or 158.78 points to 22,801.4 points, while the Hang Seng China Enterprises Index was up 1.23 per cent at 9,608.24 points. Stocks of property developers sank to three-month lows after Friday’s announcement that non first-time individual and corporate buyers would be required to... https://www.scmp.com/business/markets/article/2043557/hong-kong-stock-market-set-open-higher?utm_source=rss_feed https://www.scmp.com/business/markets/article/2043557/hong-kong-stock-market-set-open-higher?utm_source=rss_feed Mon, 07 Nov 2016 01:33:14 +0000 China’s securities regulator has called for tighter oversight of agricultural commodity trading amid concerns that speculation could be driving an unusual surge in prices for staples ranging from garlic and ginger to iron ore and coal. Fang Xinghai, the deputy head of China Securities Regulatory Commission (CSRC), on Saturday said the market should be monitored and market participants made aware of the rising risks. Fang delivered the warning during the Risk Management and Agriculture... https://www.scmp.com/business/markets/article/2043459/chinas-top-securities-regulator-urges-closer-monitoring?utm_source=rss_feed https://www.scmp.com/business/markets/article/2043459/chinas-top-securities-regulator-urges-closer-monitoring?utm_source=rss_feed Sun, 06 Nov 2016 12:37:18 +0000 The Chinese central bank is reported to be preparing even broader assessment of banks’ off-balance-sheet activities, particularly their wealth management products (WMP) – in another move to rein in the shadow banking sector, widely considered as the biggest risk facing the country’s financial system. Ma Jun, chief economist at the People’s Bank of China, remained tight lipped last week on when any further measures might start. But he did concede, in no uncertain terms, that various data has... https://www.scmp.com/business/banking-finance/article/2042682/jangled-nerves-smaller-lenders-central-bank-mulls-over-next?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/2042682/jangled-nerves-smaller-lenders-central-bank-mulls-over-next?utm_source=rss_feed Thu, 03 Nov 2016 08:13:57 +0000 Hong Kong investors’ appetite for yuan-denominated bonds has increased despite the volatility of the currency in the past year, according to a survey by Standard Chartered. Bonds have become the most popular asset class among investment products denominated in the Chinese currency, now accounting for 11 per cent of the total, the bank said on Wednesday. However, yuan-denominated assets as a proportion of total assets held by Hongkongers have dropped by 2 per cent from a year earlier. In... https://www.scmp.com/business/markets/article/2042332/hong-kongs-appetite-yuan-bonds-rise-survey-finds?utm_source=rss_feed https://www.scmp.com/business/markets/article/2042332/hong-kongs-appetite-yuan-bonds-rise-survey-finds?utm_source=rss_feed Wed, 02 Nov 2016 09:26:30 +0000 The yuan ended its first month as a member of the International Monetary Fund’s elite basket of reserve currencies with further losses. The Chinese currency, which was inducted into the IMF’s Special Drawing Rights (SDR) on October 1, fell 0.06 per cent, or 38 basis points, to 6.7816 per US dollar as of 6pm on Tuesday in Hong Kong. In onshore trading the yuan was at 6.7725, weaker by 0.03 per cent. Today’s decline comes after the currency weakened by about 1.3 per cent, or 863 basis point, from... https://www.scmp.com/business/markets/article/2041882/yuan-softens-shaking-stronger-fixing?utm_source=rss_feed https://www.scmp.com/business/markets/article/2041882/yuan-softens-shaking-stronger-fixing?utm_source=rss_feed Tue, 01 Nov 2016 03:15:15 +0000 Hong Kong stocks were driven higher on Tuesday by stronger-than-expected readings on China’s factory output for October, as investors shook off a slide in oil prices and losses on Wall Street overnight. The Hang Seng Index advanced 0.93 per cent or 213 points to close at 23,147.07 on Tuesday. The Hang Seng China Enterprises Index climbed 1.54 per cent or 146.8 points to end at 9,706.2. Blue chips were broadly on the rise. Tencent was up 0.68 per cent to close at HK$207.2 while China Mobile rose... https://www.scmp.com/business/companies/article/2041861/hong-kong-set-cautious-opening-after-oil-slide?utm_source=rss_feed https://www.scmp.com/business/companies/article/2041861/hong-kong-set-cautious-opening-after-oil-slide?utm_source=rss_feed Tue, 01 Nov 2016 01:25:00 +0000 The yuan strengthened on Monday morning after China’s central bank raised its reference rate by the most in a month, as the US dollar was dragged down by intensifying uncertainty over the presidential election. Offshore yuan climbed 0.1 per cent to 6.7799 against the US dollar as of 11.30 am in Hong Kong on Monday, recovering the critical level of 6.78. Onshore yuan was also trading 0.14 per cent higher, at 6.7697 in Shanghai. The People’s Bank of China raised the currency’s daily reference rate... https://www.scmp.com/business/markets/article/2041581/yuan-regains-critical-678-level-election-uncertainty-hits-us-dollar?utm_source=rss_feed https://www.scmp.com/business/markets/article/2041581/yuan-regains-critical-678-level-election-uncertainty-hits-us-dollar?utm_source=rss_feed Mon, 31 Oct 2016 06:17:50 +0000 Hong Kong stocks ended lower on the last trading day in October, led by insurers, which were hit hard by mainland China’s renewed restrictions over policy purchases in the city by mainland residents. The Hang Seng Index closed 0.09 per cent lower at 22,934.54 points after fluctuating into the positive territory for most of the day, giving it a monthly loss of 1.56 per cent. The H-share index managed to rise by 0.46 per cent for the day to close at 9,559.39 points. Major mainland banks climbed... https://www.scmp.com/business/companies/article/2041491/hong-kong-futures-point-lower-start-after-fbi-email-probe?utm_source=rss_feed https://www.scmp.com/business/companies/article/2041491/hong-kong-futures-point-lower-start-after-fbi-email-probe?utm_source=rss_feed Mon, 31 Oct 2016 01:23:21 +0000 The International Finance Corporation (IFC) has been seeking innovative ways to facilitate private involvement in infrastructure financing in emerging economies, with Hong Kong expected to play a key role in the initiative. In the latest move the IFC has joined hands with Allianz, a German insurance company, which will invest US$500 million in IFC debt financing for infrastructure projects in emerging markets, Vivek Pathak, IFC’s director of East Asia and Pacific, said at the first executive... https://www.scmp.com/business/banking-finance/article/2041389/world-bank-group-sees-hong-kong-playing-key-role-emerging?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/2041389/world-bank-group-sees-hong-kong-playing-key-role-emerging?utm_source=rss_feed Sun, 30 Oct 2016 10:39:25 +0000 Offshore yuan broke the critical level of 6.79 against the US dollar to hit a low of 6.7920 in morning trading in Asia, refreshing the lowest level in six years. It’s trading at 6.7868 per dollar as of 12 am in Hong Kong. Onshore yuan was trading at 6.7771 per dollar in Shanghai. Chinese banks may have sold US dollars in the morning session to support the currency, according a Bloomberg report citing unnamed traders. The People’s Bank of China cut the daily reference rate for the yuan by 31... https://www.scmp.com/business/article/2040564/offshore-yuan-breaks-679-against-us-dollar-refreshing-its-lowest-level-six?utm_source=rss_feed https://www.scmp.com/business/article/2040564/offshore-yuan-breaks-679-against-us-dollar-refreshing-its-lowest-level-six?utm_source=rss_feed Thu, 27 Oct 2016 05:05:23 +0000 Hong Kong’s goal of becoming an infrastructure financing centre for China’s One Belt One Road initiative got a boost on Wednesday, with more than a dozen new firms joining the Infrastructure Financing Facilitation Office (IFFO). IFFO, established in July by the Hong Kong Monetary Authority (HKMA) to facilitate infrastructure investments and their financing, said 13 more organisations joined its ranks, including top players such as AIA Group, Citi Group and Mizuho Bank. The announcement was made... https://www.scmp.com/business/banking-finance/article/2040339/hong-kongs-one-belt-one-road-infrastructure-financing?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/2040339/hong-kongs-one-belt-one-road-infrastructure-financing?utm_source=rss_feed Wed, 26 Oct 2016 13:26:38 +0000