https://www.scmp.com/rss/32313/feed The global foreign exchange (forex) market has ballooned in recent decades as more and more economies liberalise their capital accounts. en https://assets.i-scmp.com/static/img/icons/scmp-meta-1200x630.png https://www.scmp.com Frank Chen Frank Chen A report from a leading Beijing university has revived discussions about the “optimal size” of China’s foreign exchange reserves – with a focus on US Treasuries – calling for its world-leading forex holdings to be trimmed to a “moderately ample” level amid the drive to promote further international use of the yuan. The report, written by Sun Jiaqi from Renmin University’s International Monetary Institute and issued on March 13, examined possible ways forward and their implications for China,... https://www.scmp.com/economy/china-economy/article/3347335/global-use-yuan-expands-questions-resurface-about-chinas-world-leading-forex-reserves?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3347335/global-use-yuan-expands-questions-resurface-about-chinas-world-leading-forex-reserves?utm_source=rss_feed Sun, 22 Mar 2026 14:00:08 +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 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 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 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 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 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 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 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 Xinyi Wu Xinyi Wu China trimmed its holdings of US Treasuries in November to the lowest level since 2008, diverging from a global trend that saw total foreign ownership of the debt instruments hit a record high. Analysts say the prospect of a politicised Federal Reserve chairmanship under Donald Trump’s presidency has deepened Beijing’s concerns over its exposure to American debt, with more cuts expected. Beijing’s stockpile fell to US$682.6 billion in November, down from US$688.7 billion in October, according to... https://www.scmp.com/economy/global-economy/article/3340164/china-dumps-more-us-debt-buys-other-assets-trump-targets-powell?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3340164/china-dumps-more-us-debt-buys-other-assets-trump-targets-powell?utm_source=rss_feed Fri, 16 Jan 2026 13:00:09 +0000 Sylvia Ma Sylvia Ma The so-called China Shock 2.0 narrative is incomplete, analysts argued, as they noted that domestic macroeconomic forces in China and the West, particularly the United States, are at play in driving their growing external trade imbalance. The term, coined to describe new global ramifications of China’s manufacturing dominance – a phenomenon echoing the trade shock of the early 2000s – has been under renewed debate, particularly as China recorded a goods trade surplus of more than US$1 trillion... https://www.scmp.com/economy/china-economy/article/3339017/fears-over-chinas-trade-surplus-misplaced-us-europe-also-driving-trend-analysts?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3339017/fears-over-chinas-trade-surplus-misplaced-us-europe-also-driving-trend-analysts?utm_source=rss_feed Tue, 13 Jan 2026 12:00:11 +0000 Sylvia Ma Sylvia Ma China’s central bank strengthened the yuan’s daily fixing for a third consecutive session to a nearly 16-month high, as the currency also held firm in offshore markets despite recent US dollar strength. On Tuesday, the People’s Bank of China set the yuan’s midpoint rate, also known as the daily fixing rate, at 7.0103 to the US dollar – the strongest showing since the end of September 2024, when the rate was set at 7.0074. That official midpoint rate, however, was still weaker than that of the... https://www.scmp.com/economy/china-economy/article/3339699/chinas-central-bank-sets-onshore-yuan-fixing-strongest-point-nearly-16-months?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3339699/chinas-central-bank-sets-onshore-yuan-fixing-strongest-point-nearly-16-months?utm_source=rss_feed Tue, 13 Jan 2026 06:00:15 +0000 Sylvia Ma,Kandy Wong Sylvia Ma,Kandy Wong Recent data on China’s external accounts presents a conundrum: while the country’s trade surplus has broken records, surpassing the US$1 trillion benchmark in the first 11 months of the year, growth in its official foreign exchange reserves has lagged. This seeming paradox prompts a question – where did the money go? Analysts said the gap reflects how much of the surplus has flowed back overseas through asset investment, largely made by private-sector players, leaving China’s external accounts... https://www.scmp.com/economy/china-economy/article/3338034/china-has-logged-us1-trillion-trade-surplus-where-all-money-going?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3338034/china-has-logged-us1-trillion-trade-surplus-where-all-money-going?utm_source=rss_feed Mon, 29 Dec 2025 13:00:10 +0000 He Huifeng He Huifeng China’s offshore yuan strengthened further on Thursday, dipping below the benchmark rate of seven against the US dollar – another sign of the currency’s continued appreciation after a brief breach of the same threshold on Wednesday evening. The recent fluctuations mark the currency’s first appreciation past the major psychological marker in 15 months, suggesting a change in market sentiment and providing more support for the global investors and economists who have argued the currency has been... https://www.scmp.com/economy/china-economy/article/3337686/chinas-offshore-yuan-breaks-major-benchmark-appreciation-momentum-builds?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3337686/chinas-offshore-yuan-breaks-major-benchmark-appreciation-momentum-builds?utm_source=rss_feed Thu, 25 Dec 2025 05:42:45 +0000 Ji Siqi,Xiaofei Xu Ji Siqi,Xiaofei Xu In an effort to further promote the internationalisation of China’s currency, Beijing has pledged to expand the use of its digital yuan, including by establishing a cross-border payment pilot with Singapore. The measures, announced by the People’s Bank of China on Wednesday, are tied to a broader financial support plan for China’s New International Land-Sea Trade Corridor – a trade and logistics network, launched in 2017, that links landlocked cities in western China with hundreds of global... https://www.scmp.com/economy/global-economy/article/3337642/china-expands-digital-yuan-push-singapore-and-asean-trade-routes?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3337642/china-expands-digital-yuan-push-singapore-and-asean-trade-routes?utm_source=rss_feed Wed, 24 Dec 2025 11:30:09 +0000 Albert Bakhtizin Albert Bakhtizin As 2025 draws to a close, it marks an important milestone in the reconfiguration of the global economic system. Every century is defined not only by changes in technological leadership and shifts in global power, but also by the restructuring of the global financial system. The 20th century was the century of the US dollar, but with the arrival of the 21st century, the contours of the global macroeconomic system have begun to change. A recent International Monetary Fund study, “Playing with... https://www.scmp.com/opinion/china-opinion/article/3337132/forget-us-dollar-watch-water-and-energy-resources-instead?utm_source=rss_feed https://www.scmp.com/opinion/china-opinion/article/3337132/forget-us-dollar-watch-water-and-energy-resources-instead?utm_source=rss_feed Tue, 23 Dec 2025 01:30:08 +0000 Phoebe Zhang Phoebe Zhang China has highlighted its success in joint law enforcement with the US, with state media publishing a rare report on a drugs-related money laundering case triggered by a tip-off from American authorities. Two men were sentenced in September in the case spanning both nations, the People’s Daily reported last week. This comes amid renewed US-China momentum against drug crimes, showcasing steady bilateral progress in anti-narcotics enforcement. Officers in Shenyang, in northeast China’s Liaoning... https://www.scmp.com/news/china/politics/article/3337299/china-praises-joint-effort-us-after-pair-sentenced-drug-related-money-laundering?utm_source=rss_feed https://www.scmp.com/news/china/politics/article/3337299/china-praises-joint-effort-us-after-pair-sentenced-drug-related-money-laundering?utm_source=rss_feed Mon, 22 Dec 2025 07:15:12 +0000 Sylvia Ma Sylvia Ma China’s currency appears poised to break through the psychological 7.0-per-dollar barrier next year, fuelled by US Federal Reserve rate cuts and thawing trade tensions, with some bulls betting that the yuan could strengthen to 6.8. Analysts and onlookers are increasingly optimistic, with some citing the potential for a relatively weaker US dollar and pointing to signs that Beijing’s policy support is stabilising the world’s second-largest economy. Guan Tao, a former senior official with China’s... https://www.scmp.com/economy/china-economy/article/3336453/chinas-currency-comeback-yuan-seen-strong-68-2026-breaking-key-dollar-level?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3336453/chinas-currency-comeback-yuan-seen-strong-68-2026-breaking-key-dollar-level?utm_source=rss_feed Mon, 15 Dec 2025 06:30:41 +0000 Sylvia Ma Sylvia Ma China’s central bank has set the yuan’s daily reference rate against the US dollar at the strongest level in more than a year, with analysts expecting room for appreciation should a December rate cut by the US Federal Reserve weaken the dollar. The People’s Bank of China set the yuan’s midpoint rate, also known as the daily fixing rate, at 7.0796 to the US dollar on Wednesday – the strongest showing since October 2024. The decision followed a 0.34 per cent rally in the offshore yuan on Tuesday,... https://www.scmp.com/economy/china-economy/article/3334178/china-sets-strongest-yuan-fix-over-year-fed-cut-bets-rise?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3334178/china-sets-strongest-yuan-fix-over-year-fed-cut-bets-rise?utm_source=rss_feed Wed, 26 Nov 2025 05:10:10 +0000 Bloomberg Bloomberg An options market gauge showing the cost to hedge against declines or advances in the yuan has turned neutral for the first time in more than 14 years. So-called one-year risk reversals for the offshore yuan-dollar currency pair have fallen below zero to the lowest since July 2011, according to data compiled by Bloomberg. The level indicates that traders are now paying about the same amount to hedge against yuan strength as they are against its weakness. The turnaround has taken place as China’s... https://www.scmp.com/business/banking-finance/article/3334055/yuans-long-term-hedge-costs-equalise-first-time-2011?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3334055/yuans-long-term-hedge-costs-equalise-first-time-2011?utm_source=rss_feed Tue, 25 Nov 2025 06:35:54 +0000 Sylvia Ma,Frank Chen Sylvia Ma,Frank Chen China slightly increased its US Treasury holdings in August and September – though the uptick did little to offset an overall downward trend – as persistent worries over US debt sustainability and the Federal Reserve’s independence deepened doubts about the safety of assets backed by the US dollar. The country’s stockpile rose to US$701 billion in August, up from July’s multi-year low of US$696.9 billion, but it again trimmed the total to US$700.5 billion in September, according to data from the... https://www.scmp.com/economy/china-economy/article/3333405/chinas-us-treasury-holdings-edge-long-term-sell-continues?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3333405/chinas-us-treasury-holdings-edge-long-term-sell-continues?utm_source=rss_feed Wed, 19 Nov 2025 13:00:10 +0000 Luna Sun Luna Sun The Japanese yen slid to a nine-month low against the US dollar, breaching a closely watched threshold of 155 amid domestic policy uncertainties, fading expectations of a Federal Reserve rate cut in December, and amplified China-Japan tensions over Taiwan. The yen’s exchange rate briefly weakened beyond 155.3 to the dollar on Tuesday before improving slightly, while broader markets also came under pressure. Stocks slumped, bonds were sold off, and long-term yields jumped to multi-decade highs,... https://www.scmp.com/economy/global-economy/article/3333268/japan-yen-slips-past-155-us-dollar-fiscal-doubts-china-spat-sap-investor-confidence?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3333268/japan-yen-slips-past-155-us-dollar-fiscal-doubts-china-spat-sap-investor-confidence?utm_source=rss_feed Tue, 18 Nov 2025 09:43:39 +0000 Enoch Yiu Enoch Yiu Hong Kong’s Exchange Fund posted its biggest nine-month return since the Hong Kong Monetary Authority (HKMA) began releasing the data in 2003, as a bull run in the stock market helped boost the financial war chest used to defend the local currency. The Exchange Fund reported a decline in its third-quarter gains, but cumulative earnings for the first nine months of the year jumped 14.6 per cent to HK$274 billion (US$35 billion), the HKMA, which manages the fund, said in a statement on... https://www.scmp.com/business/banking-finance/article/3332650/hong-kongs-exchange-fund-gains-record-us35-billion-first-9-months-amid-market-rally?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3332650/hong-kongs-exchange-fund-gains-record-us35-billion-first-9-months-amid-market-rally?utm_source=rss_feed Thu, 13 Nov 2025 10:00:36 +0000 Richard Harris Richard Harris Economist Paul Samuelson famously quipped that stock markets accurately predicted nine of the last five recessions. The same could be said of financial economists. So-called leading indicators like market sentiment swing with the daily news. Optimism is the default option but bull markets die hard. Still, most seasoned financial economists now recognise that stock markets are becoming more fragile. And so does the crowd. The frequency of online searches for “stock market bubble” has surged since... https://www.scmp.com/opinion/world-opinion/article/3331666/amid-fragile-markets-how-predict-when-bubble-will-burst?utm_source=rss_feed https://www.scmp.com/opinion/world-opinion/article/3331666/amid-fragile-markets-how-predict-when-bubble-will-burst?utm_source=rss_feed Thu, 06 Nov 2025 21:30:09 +0000 Kandy Wong,Sylvia Ma Kandy Wong,Sylvia Ma When US President Donald Trump fired the opening salvoes of his country’s trade war with China in his first term, Beijing’s currency was on the front lines. By 2019, the yuan had tumbled past the benchmark value of seven per US dollar for the first time in over a decade, rattling investors and fuelling speculation that Beijing was allowing depreciation to mitigate the effects of tariffs. As Washington and Beijing began to lock horns once again, with Trump’s second White House foray bringing with... https://www.scmp.com/economy/global-economy/article/3331309/china-holds-line-trade-war-20-its-yuan-follows-suit?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3331309/china-holds-line-trade-war-20-its-yuan-follows-suit?utm_source=rss_feed Tue, 04 Nov 2025 22:00:09 +0000 Willa Wu,Sylvia Ma,Connor Mycroft Willa Wu,Sylvia Ma,Connor Mycroft Chinese Vice-Premier He Lifeng has vowed continued support for Hong Kong in bolstering its role as an international financial centre, while the city’s leader promised stability and certainty for global investors seeking to diversify their assets amid geopolitical tensions. Speaking at the 2025 Global Financial Leaders’ Investment Summit on Tuesday, He expressed confidence in Hong Kong’s prosperity, stressing that its status as a financial hub was “set to be further consolidated and... https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3331407/hong-kong-offers-certainty-global-investors-amid-market-volatility-john-lee?utm_source=rss_feed https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3331407/hong-kong-offers-certainty-global-investors-amid-market-volatility-john-lee?utm_source=rss_feed Tue, 04 Nov 2025 02:06:19 +0000 Salina Li Salina Li Adrian Cheng Chi-kong, former heir apparent to Hong Kong property giant New World Development (NWD) and founder of investment firm ALMAD Group, has become a shareholder in CBCX Group, a London-headquartered multi-asset broker. Founded in 2011, CBCX offers a trading platform for currencies, precious metals, stocks, indices and commodities. It is also expanding into the digital-asset ecosystem. “This strategic investment will inject significant momentum and resources into CBCX’s growth across the... https://www.scmp.com/business/companies/article/3330482/hong-kong-scion-adrian-cheng-backs-london-based-multi-asset-broker-cbcx?utm_source=rss_feed https://www.scmp.com/business/companies/article/3330482/hong-kong-scion-adrian-cheng-backs-london-based-multi-asset-broker-cbcx?utm_source=rss_feed Mon, 27 Oct 2025 09:45:10 +0000 Frank Tang Frank Tang China is in talks with Japan and South Korea – both US allies – about a possible trilateral currency swap to bolster the region’s financial safety net and deepen economic cooperation amid US President Donald Trump’s trade war, according to a source familiar with the issue. Pan Gongsheng, governor of the People’s Bank of China (PBOC), touched on the issue with his South Korean and Japanese counterparts, Rhee Chang-yong and Kazuo Ueda, on the sidelines of the IMF-World Bank annual meetings in... https://www.scmp.com/news/china/money-wealth/article/3329849/china-eyes-3-way-currency-swap-japan-and-south-korea-amid-trumps-tariff-war-source?utm_source=rss_feed https://www.scmp.com/news/china/money-wealth/article/3329849/china-eyes-3-way-currency-swap-japan-and-south-korea-amid-trumps-tariff-war-source?utm_source=rss_feed Tue, 21 Oct 2025 16:23:46 +0000 Park Chan-kyong Park Chan-kyong Top Seoul officials are visiting Washington amid signs of major progress in tough trade negotiations, although analysts warn that a coerced deal could severely damage South Korea’s economy. Kim Yong-bum, policy chief of the presidential staff, and Industry Minister Kim Jung-kwan left for Washington on Thursday to join Finance Minister Koo Yun-cheol and Trade Minister Yeo Han-koo. The delegation plans to meet US counterparts to finalise details of South Korea’s US$350 billion investment... https://www.scmp.com/week-asia/economics/article/3329211/south-korea-us-edge-closer-us350-billion-trade-deal-breakthrough-gap-has-narrowed?utm_source=rss_feed https://www.scmp.com/week-asia/economics/article/3329211/south-korea-us-edge-closer-us350-billion-trade-deal-breakthrough-gap-has-narrowed?utm_source=rss_feed Thu, 16 Oct 2025 05:50:35 +0000 Zhou Xiaoming Zhou Xiaoming In what Martin Wolf at the Financial Times called “pure gangsterism”, US President Donald Trump has extracted pledged investments of at least US$1.5 trillion from America’s trading partners. This amounts to the Marshall Plan in reverse. The scheme Washington initiated in 1947 essentially provided economic aid to Europe and later Japan. Of the US$13 billion provided, 90 per cent were grants. But in the US-Japan trade deal, seen as a political trophy for Trump, money will flow in the other... https://www.scmp.com/opinion/world-opinion/article/3328264/trump-shaking-down-us-trade-partners-reverse-marshall-plan?utm_source=rss_feed https://www.scmp.com/opinion/world-opinion/article/3328264/trump-shaking-down-us-trade-partners-reverse-marshall-plan?utm_source=rss_feed Fri, 10 Oct 2025 12:30:08 +0000 Reuters Reuters The adoption of stablecoins could generate an additional US$1.4 trillion in demand for US dollars by 2027, if enough overseas investors wanted to own these digital assets, analysts at JPMorgan (JPM) said in a note on Tuesday. The potential increase in dollar demand underlines the importance of the burgeoning stablecoin market in traditional finance. JPMorgan believes that rather than accelerating de-dollarisation, the growth in stablecoin adoption has the potential to reinforce the dollar’s role... https://www.scmp.com/tech/blockchain/article/3328298/stablecoins-set-boost-us-dollar-demand-us14-trillion-2027-jpmorgan?utm_source=rss_feed https://www.scmp.com/tech/blockchain/article/3328298/stablecoins-set-boost-us-dollar-demand-us14-trillion-2027-jpmorgan?utm_source=rss_feed Thu, 09 Oct 2025 02:15:30 +0000 Sylvia Ma Sylvia Ma Even after a record-setting run, the price of gold appears poised for further gains, as China’s central bank extended its buying streak to an 11th straight month and demand for the safe-haven asset continues to grow amid an ongoing US government shutdown. Spot gold prices in London surpassed the benchmark US$4,000 per ounce on Wednesday morning, hitting a new high after an identical breach by gold futures in New York on Tuesday. The surge comes as investors seek reliable sources of return in an... https://www.scmp.com/economy/china-economy/article/3328200/chinas-central-bank-aids-golds-record-setting-run-11-month-buying-streak?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3328200/chinas-central-bank-aids-golds-record-setting-run-11-month-buying-streak?utm_source=rss_feed Wed, 08 Oct 2025 05:08:45 +0000 Mark Lam Pui Chung Mark Lam Pui Chung For decades, cross-border trade in the Asia-Pacific has been denominated in US dollars. Given the currency’s relative stability and accessibility, small and medium-sized businesses, merchants and manufacturers looking to expand across borders traditionally conducted international trade in the US dollar. For instance, a Shenzhen manufacturer in China paying its Indonesian supplier would convert yuan to US dollars for the payment, which when received will be converted to Indonesian rupiah, and... https://www.scmp.com/opinion/asia-opinion/article/3327285/why-asia-pacific-rewriting-terms-trade-dollar-yuan?utm_source=rss_feed https://www.scmp.com/opinion/asia-opinion/article/3327285/why-asia-pacific-rewriting-terms-trade-dollar-yuan?utm_source=rss_feed Thu, 02 Oct 2025 01:30:08 +0000 Sylvia Ma Sylvia Ma The Chinese yuan’s share in global foreign exchange (forex) trading climbed to 8.5 per cent this year while maintaining its position as the world’s fifth-most traded currency, according to survey findings by the so-called central bank for central banks. The proportion, unveiled by the Bank for International Settlements (BIS) in its 2025 Triennial Central Bank Survey – launched in April, with the findings released on Tuesday – showed an increase from 7 per cent in the 2022 survey, with the yuan’s... https://www.scmp.com/economy/global-economy/article/3327391/chinese-yuans-forex-market-share-grows-85-global-position-firms-bis-survey?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3327391/chinese-yuans-forex-market-share-grows-85-global-position-firms-bis-survey?utm_source=rss_feed Tue, 30 Sep 2025 13:00:10 +0000 Igor Patrick Igor Patrick The Trump administration pressed Argentina on Wednesday to dismantle its currency swap arrangement with China, tying future financial support to President Javier Milei’s willingness to distance his government from Beijing during a week of high-stakes diplomacy at the United Nations General Assembly. The demand, first reported by the local newspaper Clarin and confirmed by the Post on Thursday, was delivered in meetings between the two delegations in New York, where senior US officials made clear... https://www.scmp.com/news/china/article/3326895/trump-administration-ties-argentina-support-rollback-china-credit-line?utm_source=rss_feed https://www.scmp.com/news/china/article/3326895/trump-administration-ties-argentina-support-rollback-china-credit-line?utm_source=rss_feed Thu, 25 Sep 2025 17:42:03 +0000 Sylvia Ma Sylvia Ma As China continues to cut its US Treasury holdings – reaching a near 17-year low in July as concerns over assets backed by the US dollar mount – analysts said the country’s central bank could be pivoting to European assets and perennial safe haven gold as more reliable investments. Beijing’s stockpile dropped to US$730.7 billion in July, down US$25.7 billion from June, according to data released by the US Treasury Department on Thursday. July’s figure was the lowest reported since January 2009,... https://www.scmp.com/economy/global-economy/article/3326123/chinas-us-treasury-holdings-are-record-lows-where-investment-going?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3326123/chinas-us-treasury-holdings-are-record-lows-where-investment-going?utm_source=rss_feed Fri, 19 Sep 2025 07:10:06 +0000 Enoch Yiu Enoch Yiu The Hong Kong Monetary Authority (HKMA) is set to encourage more mainland banks to set up regional headquarters in the city, while the local bourse operator plans to enhance the listing regime, as the government aims to fortify Hong Kong’s position as an international financial centre, according to Chief Executive John Lee Ka-chiu. In his policy address on Wednesday, Lee also said the government planned to issue more RMB bonds and was considering using renminbi to settle government expenditures... https://www.scmp.com/business/banking-finance/article/3325891/policy-address-2025-hong-kong-unveils-measures-boost-financial-centre-status?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3325891/policy-address-2025-hong-kong-unveils-measures-boost-financial-centre-status?utm_source=rss_feed Wed, 17 Sep 2025 11:44:40 +0000 Mia Nurmamat,Sylvia Ma Mia Nurmamat,Sylvia Ma Ahead of an anticipated interest rate cut from the US Federal Reserve this week, the offshore yuan strengthened past a rate of 7.1 against the US dollar for the first time in nearly a year – another milestone reached in a gradual shift of China's monetary policy that has seen the currency gain ground over the last month. On Wednesday morning, the offshore yuan reached 7.0999 per US dollar, its strongest showing since November. It was trading at 7.1027 as of Wednesday afternoon. The People’s Bank... https://www.scmp.com/economy/policy/article/3325822/chinas-offshore-yuan-strengthens-further-against-us-dollar-rate-cuts-loom?utm_source=rss_feed https://www.scmp.com/economy/policy/article/3325822/chinas-offshore-yuan-strengthens-further-against-us-dollar-rate-cuts-loom?utm_source=rss_feed Wed, 17 Sep 2025 06:00:35 +0000 Park Chan-kyong Park Chan-kyong In Seoul, alarm bells are ringing. Washington is demanding an eye-watering US$350 billion in direct investment, a sum so vast that economists warn it could tip South Korea into a crisis unseen in its modern history. US Commerce Secretary Howard Lutnick bluntly asserted last week that South Korea must accept the deal or face higher tariffs – pointing out that Japan had already agreed to similar terms. Under a framework agreement reached in July, the United States offered to reduce proposed... https://www.scmp.com/week-asia/economics/article/3325666/south-korea-trumps-us350-billion-demand-threatens-financial-meltdown?utm_source=rss_feed https://www.scmp.com/week-asia/economics/article/3325666/south-korea-trumps-us350-billion-demand-threatens-financial-meltdown?utm_source=rss_feed Tue, 16 Sep 2025 05:30:09 +0000 Luna Sun Luna Sun China’s central bank extended its gold-buying streak for a 10th straight month in August, part of a broader rush into the precious metal by global central banks that has lifted prices to new heights. The move came as Beijing attempts to further diversify its reserves at a time of mounting geopolitical risks and lingering doubts over the long-term stability of assets backed by the US dollar. China’s foreign exchange regulator said the country’s gold holdings rose to 74.02 million ounces at the... https://www.scmp.com/economy/china-economy/article/3324726/china-extends-gold-buying-streak-central-banks-seek-us-dollar-alternatives?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3324726/china-extends-gold-buying-streak-central-banks-seek-us-dollar-alternatives?utm_source=rss_feed Mon, 08 Sep 2025 08:00:22 +0000