https://www.scmp.com/rss/507594/feed en https://assets.i-scmp.com/static/img/icons/scmp-meta-1200x630.png https://www.scmp.com 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 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 Sylvia Ma Sylvia Ma A recent rally in China’s yuan has been primarily fuelled by stronger guidance from its central bank rather than by market forces, analysts said, pointing to a mostly steady US dollar index. However, they noted, this period of strengthening is likely to remain measured, as Beijing prefers to avoid harming the competitiveness of its exporters amid trade tensions with the United States. Over just five trading days last week, the People’s Bank of China pushed the yuan’s reference rate against the... https://www.scmp.com/economy/china-economy/article/3324501/chinas-yuan-rallies-central-bank-backing-worries-mount-over-us-dollar?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3324501/chinas-yuan-rallies-central-bank-backing-worries-mount-over-us-dollar?utm_source=rss_feed Sat, 06 Sep 2025 02:00:14 +0000 Kandy Wong Kandy Wong Once a niche corner of the cryptocurrency world, stablecoins have surged into the global spotlight this year, prompting analysts and industry insiders to declare that the digital asset’s time has come. In July, US President Donald Trump signed the GENIUS Act into law, establishing the first federal regulatory regime for stablecoins – a move many believe could pave the way for mass-market adoption. Shortly after, Hong Kong introduced its own ordinance, which took effect on August 1, requiring... https://www.scmp.com/economy/china-economy/article/3324322/chinas-stablecoin-dilemma-why-us-dollar-tokens-matter-and-how-beijing-might-respond?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3324322/chinas-stablecoin-dilemma-why-us-dollar-tokens-matter-and-how-beijing-might-respond?utm_source=rss_feed Thu, 04 Sep 2025 22:00:12 +0000 Sylvia Ma Sylvia Ma In the decade since China shocked the world with a surprise devaluation of the yuan, the nation’s exchange-rate regime has steadily shifted towards market-based – yet still managed – pricing, and analysts say the era of burning through massive reserves to defend the currency is firmly in the rear-view mirror. Armed with lessons from the past, Beijing now employs a wider arsenal of tools to manage volatility, they added, with the key challenge for the coming decade being whether the yuan can open... https://www.scmp.com/economy/china-economy/article/3321464/10-years-day-chinas-big-yuan-devaluation-set-shock-waves-what-has-changed?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3321464/10-years-day-chinas-big-yuan-devaluation-set-shock-waves-what-has-changed?utm_source=rss_feed Mon, 11 Aug 2025 13:00:08 +0000 Mandy Zuo Mandy Zuo A financial dilemma has sent local-level financial authorities across China scrambling as they try to navigate a stablecoin frenzy that some say has become a breeding ground for chaos, with scams that have already duped millions. As a result, several local governments have elevated stablecoins to the top of their agendas in recent weeks while issuing urgent warnings to investors about illegal fundraising and fraudulent schemes. With this in mind, the nation’s top financial authorities remain... https://www.scmp.com/economy/china-economy/article/3318158/stablecoin-scams-innovation-put-chinas-financial-regulators-high-stakes-balancing-act?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3318158/stablecoin-scams-innovation-put-chinas-financial-regulators-high-stakes-balancing-act?utm_source=rss_feed Mon, 14 Jul 2025 14:00:08 +0000 Sylvia Ma Sylvia Ma The yuan has the potential to become a safe-haven currency, a former central bank official said while calling for capital-control flexibility and greater efforts to boost foreign participation. The argument – presented before the US Treasury chief rejected the possibility last week of the yuan gaining reserve-currency status – has underscored the ongoing debate over Beijing’s push to internationalise the yuan. And it comes at a time when confidence in the US dollar is being tested by mounting... https://www.scmp.com/economy/china-economy/article/3317643/why-chinas-yuan-can-be-safe-haven-currency-former-bank-official-flags-its-advantages?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3317643/why-chinas-yuan-can-be-safe-haven-currency-former-bank-official-flags-its-advantages?utm_source=rss_feed Thu, 10 Jul 2025 06:00:16 +0000 Sylvia Ma Sylvia Ma Issuing a stablecoin pegged to the offshore yuan in Hong Kong may be more feasible than in mainland China due to the latter’s capital controls, a central bank adviser has said. The comments from Huang Yiping, also dean of Peking University’s National School of Development, came as worries arise in Beijing’s policy circles that Washington could gain an upper hand through the cryptocurrency offshoot as a means of consolidating US dollar dominance. “As China’s capital account is not fully... https://www.scmp.com/economy/china-economy/article/3316811/economist-huang-yiping-floats-hong-kong-stablecoin-staging-ground?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3316811/economist-huang-yiping-floats-hong-kong-stablecoin-staging-ground?utm_source=rss_feed Thu, 03 Jul 2025 09:00:09 +0000 Alice Li Alice Li When South Korea reportedly halted its digital currency pilot programme this week in favour of stablecoins – cryptocurrencies pegged to a reference asset, typically a fiat currency – it sent shock waves through central banks across the world. It also left China – a pioneer in central bank-backed digital currencies with its digital yuan, or e-CNY – with an important question to answer, namely whether it should continue to explore such digital assets or revisit the possibility of adopting the... https://www.scmp.com/economy/china-economy/article/3316651/world-going-all-stablecoins-chinas-digital-yuan-any-different?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3316651/world-going-all-stablecoins-chinas-digital-yuan-any-different?utm_source=rss_feed Wed, 02 Jul 2025 09:30:08 +0000 Leopold Chen Leopold Chen With some major economies leaping onto the stablecoin train – or being urged to do so, to further globalise their currencies – others are mulling whether getting on board would be akin to either riding the gravy train or feeling it fail to gather steam. Now, the international financial organisation known as the “bank for central banks” has waded into the stablecoin debate as the buzzword gathers momentum. In a “special chapter” released on Tuesday in advance of Sunday’s release of its Annual... https://www.scmp.com/economy/global-economy/article/3315616/amid-china-us-stablecoin-buzz-bis-warns-trio-sound-money-traits-missing?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3315616/amid-china-us-stablecoin-buzz-bis-warns-trio-sound-money-traits-missing?utm_source=rss_feed Tue, 24 Jun 2025 11:00:08 +0000 Sylvia Ma Sylvia Ma Central banks are showing more interest in the Chinese yuan as doubts grow about the future of the US dollar, but this shift is not enough to challenge the greenback’s dominance in global reserves, according to a new survey. In its latest Global Public Investor poll released on Tuesday, the London-based Official Monetary and Financial Institutions Forum (OMFIF) said a net 14 per cent of reserve managers plan to increase their yuan exposure in the next two years, up sharply from the 2 per cent... https://www.scmp.com/economy/china-economy/article/3315593/chinas-yuan-set-benefit-central-banks-report-doubts-about-us-dollar?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3315593/chinas-yuan-set-benefit-central-banks-report-doubts-about-us-dollar?utm_source=rss_feed Tue, 24 Jun 2025 09:00:07 +0000 Leopold Chen Leopold Chen Beijing must be proactive in “adapting to the trend of stablecoins”, and waiting is not an option as the US has a head start, warns an article on Monday in state media that simultaneously calls for leadership to consider legislation regulating stablecoins while hyping up their potential role in making the yuan a more global currency. Securities Times, a publication under party mouthpiece People’s Daily, said experts and industry insiders “generally believe that, as an emerging payment tool, the... https://www.scmp.com/economy/china-economy/article/3315469/china-needs-yuan-backed-stablecoins-sooner-rather-later-state-media-urges-beijing?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3315469/china-needs-yuan-backed-stablecoins-sooner-rather-later-state-media-urges-beijing?utm_source=rss_feed Mon, 23 Jun 2025 09:00:09 +0000 Luna Sun,Frank Chen Luna Sun,Frank Chen With major economies gearing up for the rising ubiquity of stablecoins and their impact on the global economy, former Chinese central bank chief Zhou Xiaochuan has warned that US dollar-backed stablecoins could accelerate the “dollarisation” of the international monetary system. Amid the explosive growth of cryptocurrency in the past few years, continued focus from high-level figures reflects the Chinese government’s interest in underlying technologies and their potential role in cross-border... https://www.scmp.com/economy/china-economy/article/3315090/why-us-backed-stablecoins-have-china-wary-potentially-more-dominant-dollar?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3315090/why-us-backed-stablecoins-have-china-wary-potentially-more-dominant-dollar?utm_source=rss_feed Thu, 19 Jun 2025 10:30:49 +0000 Carol Yang Carol Yang As the United States scales back foreign aid and increases financial sanctions through long-arm jurisdiction, analysts said Beijing is strengthening its influence in international development finance and regional economic cooperation. Driven by rising geopolitical tensions and Russia’s strategic pivot to the East, they said the Shanghai Cooperation Organisation (SCO) Development Bank, which has been stalled for over a decade, was now closer than ever to becoming a reality. Momentum is building... https://www.scmp.com/economy/global-economy/article/3314777/china-pushes-sco-development-bank-russia-pivots-asia-analysts?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3314777/china-pushes-sco-development-bank-russia-pivots-asia-analysts?utm_source=rss_feed Tue, 17 Jun 2025 14:30:08 +0000 Alex Au Alex Au In just the past month, stablecoin has moved from the fringes of cryptocurrency into the heart of mainstream finance. Hong Kong enacted its stablecoin ordinance, creating a regulatory framework to legitimise and support the issuance of stablecoins, while US lawmakers discuss similar legislation aimed at fostering large-scale stablecoin adoption. Meanwhile, stablecoin issuer Circle Internet Group made headlines when it went public in New York, with the stock price surging 168 per cent on... https://www.scmp.com/opinion/hong-kong-opinion/article/3314386/hong-kong-developing-yuan-pegged-stablecoin-would-be-game-changer?utm_source=rss_feed https://www.scmp.com/opinion/hong-kong-opinion/article/3314386/hong-kong-developing-yuan-pegged-stablecoin-would-be-game-changer?utm_source=rss_feed Mon, 16 Jun 2025 21:30:08 +0000 Sylvia Ma Sylvia Ma China’s central bank set the yuan’s daily fixing against the US dollar at its strongest level in more than two months, as the greenback tumbled to a multi-year low amid expectations for more interest rate cuts from the Federal Reserve later this year. On Friday, the People’s Bank of China set the yuan’s midpoint rate – also known as the daily fixing rate – at 7.1772 per US dollar, its strongest showing since late March. The move came as the US dollar index plummeted to 97.61 on Thursday - a... https://www.scmp.com/economy/china-economy/article/3314323/chinas-yuan-fixing-rate-hits-two-month-high-us-dollar-drops?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3314323/chinas-yuan-fixing-rate-hits-two-month-high-us-dollar-drops?utm_source=rss_feed Fri, 13 Jun 2025 09:30:08 +0000 Sylvia Ma Sylvia Ma Cryptocurrencies – including bitcoin and stablecoins – are not an alternative to gold, nor do they pose a threat to its role as a safe-haven investment, an expert with the World Gold Council said. John Reade, the senior market strategist and head of research at the association, said that long-term demand for gold remains well supported amid mounting concerns over US dollar assets, persistent trade and geopolitical tensions, and the economic fallout of tariffs. “Bitcoin and other digital assets... https://www.scmp.com/economy/china-economy/article/3314265/gold-20-or-just-fallacy-crypto-cant-chip-away-golds-safe-haven-shield-researcher?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3314265/gold-20-or-just-fallacy-crypto-cant-chip-away-golds-safe-haven-shield-researcher?utm_source=rss_feed Fri, 13 Jun 2025 04:42:28 +0000 Sylvia Ma,Ji Siqi Sylvia Ma,Ji Siqi As the United States faces renewed concern over unsustainable debts and its deficit outlook, ignited by the “One Big Beautiful Bill Act” and new tariff threats from US President Donald Trump, China’s yuan is being hailed by analysts for its resiliency during the ongoing trade war, with some pointing to a “renaissance of the renminbi”. Concerns over the sustainability of US debt levels intensified after the US House of Representatives last week passed a sweeping tax and spending bill, which is... https://www.scmp.com/economy/china-economy/article/3312008/how-us-dollar-doubts-risk-triple-whammy-could-give-rise-yuans-renaissance?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3312008/how-us-dollar-doubts-risk-triple-whammy-could-give-rise-yuans-renaissance?utm_source=rss_feed Tue, 27 May 2025 15:00:08 +0000 Ralph Jennings Ralph Jennings China’s yuan has the potential to rival a weakening US dollar as a global currency if Beijing liberalises convertibility and access for foreigners, according to a senior Asian economist. China wants more international use of its centrally controlled yuan, and the currency already works fluidly in cross-border purchase settlements, said Hoe Ee Khor, chief economist with the Singapore-based Asean+3 Macroeconomic Research Office. “The US exceptionalism is over – the beginning of the end,” Khor told... https://www.scmp.com/economy/global-economy/article/3310638/chinas-yuan-fit-rival-us-dollar-global-currency-if-more-accessible-economist?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3310638/chinas-yuan-fit-rival-us-dollar-global-currency-if-more-accessible-economist?utm_source=rss_feed Mon, 19 May 2025 00:00:14 +0000 Ralph Jennings Ralph Jennings China has done little to de-dollarise its economy despite a push to resist Washington in a tumultuous trade war, and as an exporting nation, it is unlikely to back away from American currency holdings in the short term, according to an Oxford Economics report. Most available data delinks China from recent “volatility” in US bond markets, the Monday report said, referring to movement in April as US President Donald Trump unleashed tariffs around the world and hit China especially hard. “Even if... https://www.scmp.com/economy/global-economy/article/3309260/china-avoiding-disruptive-de-dollarisation-despite-us-trade-war-report-says?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3309260/china-avoiding-disruptive-de-dollarisation-despite-us-trade-war-report-says?utm_source=rss_feed Tue, 06 May 2025 10:45:09 +0000 Luna Sun Luna Sun The offshore yuan strengthened and broke past the 7.2 level against the US dollar for the first time since November, signalling an optimistic shift in market sentiment as hopes of a trade war thaw and fresh demand grows for Chinese assets. The recent renminbi gain was largely driven by expectations that the US and China will soon begin negotiating, said Xu Tianchen, senior China economist at the Economist Intelligence Unit, adding that a working-level engagement may have already started, or was... https://www.scmp.com/economy/china-economy/article/3309093/chinas-offshore-yuan-jumps-6-month-high-rollback-egregious-tariffs-seen-likely?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3309093/chinas-offshore-yuan-jumps-6-month-high-rollback-egregious-tariffs-seen-likely?utm_source=rss_feed Mon, 05 May 2025 08:00:11 +0000 China has released an action plan to promote the use of the yuan and its own payment system in international trade, as it seeks to reduce its dependence on the dollar amid an escalating trade war with the United States. The plan – jointly released by the Shanghai municipal government, the People’s Bank of China and the country’s financial regulators on Monday – aims to leverage Shanghai’s role as a global financial hub to promote the use of the Chinese currency, especially in trade involving... https://www.scmp.com/economy/china-economy/article/3307472/china-rolls-out-plan-promote-its-own-payment-system-us-trade-war-simmers?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3307472/china-rolls-out-plan-promote-its-own-payment-system-us-trade-war-simmers?utm_source=rss_feed Tue, 22 Apr 2025 14:00:12 +0000 Enterprises are growing more keen on using the yuan in the settlement of international payments – a trend emerging as the safety and credibility of US assets are questioned, according to survey results released by Renmin University’s International Monetary Institute on Sunday. And a weakening of the US dollar’s dominance, particularly exacerbated by a series of policies from the new US administration, has created a favourable opportunity for the yuan’s internationalisation, according to... https://www.scmp.com/economy/global-economy/article/3307335/chinas-yuan-sees-payment-popularity-rise-amid-soaring-volatility-us-treasury-market?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3307335/chinas-yuan-sees-payment-popularity-rise-amid-soaring-volatility-us-treasury-market?utm_source=rss_feed Mon, 21 Apr 2025 15:00:08 +0000 A former adviser to China’s central bank has voiced grave concerns over the safety of the country’s overseas assets, and urged authorities to make necessary preparations in the wake of unprecedented tariff hikes from US President Donald Trump that could push the rivalry between the world’s two largest economies into the financial sector. The warning from Yu Yongding, a senior economist at the Chinese Academy of Social Sciences (CASS), came at a forum in Beijing on Wednesday, when Trump had... https://www.scmp.com/economy/global-economy/article/3306201/economist-says-chinas-overseas-assets-risk-trade-war-hits-boiling-point?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3306201/economist-says-chinas-overseas-assets-risk-trade-war-hits-boiling-point?utm_source=rss_feed Fri, 11 Apr 2025 13:30:12 +0000 While China’s central bank has set the yuan’s daily reference rate to a four-month low against the US dollar, the metric has not yet breached the all-important 7.2 benchmark – a move seen by analysts as a sign of stabilisation efforts rather than the sharp devaluation some expected to offset the impact of US tariffs. On Monday, the People’s Bank of China set the yuan’s daily fixing – also known as the midpoint rate – at 7.1980 per US dollar, the weakest since early December. The move came amid... https://www.scmp.com/economy/china-economy/article/3305466/china-opts-stability-over-devaluation-tariff-tremors-give-yuan-jolt?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3305466/china-opts-stability-over-devaluation-tariff-tremors-give-yuan-jolt?utm_source=rss_feed Mon, 07 Apr 2025 05:20:16 +0000 China’s factory activity expanded at its fastest pace in four months in March, buoyed by stronger demand and robust export orders, a private-sector survey showed on Tuesday, though an escalating trade war with the United States clouds the outlook. The Caixin/S&P Global manufacturing PMI climbed to 51.2 in March from 50.8 in the previous month, surpassing analyst expectations of 51.1. The 50-mark separates growth from contraction. The rebound broadly aligned with the official PMI, which was... https://www.scmp.com/economy/economic-indicators/article/3304678/chinas-factory-activity-speeds-export-boost-caixin-pmi-shows?utm_source=rss_feed https://www.scmp.com/economy/economic-indicators/article/3304678/chinas-factory-activity-speeds-export-boost-caixin-pmi-shows?utm_source=rss_feed Tue, 01 Apr 2025 04:21:50 +0000 The global economy is inexorably moving towards a multicurrency system as China’s persistent efforts to internationalise the yuan and technological changes erode the US dollar’s dominant position, economists said at a conference on Monday. “Trade invoicing in yuan went from zero per cent to 30 per cent in the last 10 years, and half of Chinese capital flows are now in yuan, much higher than before,” said Jin Keyu, an economist who was a tenured professor at the London School of Economics for 15... https://www.scmp.com/economy/china-economy/article/3303654/decline-us-dollar-dominant-global-currency-inevitable-economists?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3303654/decline-us-dollar-dominant-global-currency-inevitable-economists?utm_source=rss_feed Mon, 24 Mar 2025 12:30:16 +0000 After more than two decades in China - including years spent teaching finance at Peking University and Tsinghua University - Michael Pettis has become an oft-cited voice on the challenges faced by the world’s second-largest economy. Before moving to Beijing, he also worked on Wall Street as a trader, with stints at JP Morgan and Bear Stearns. In this interview, Pettis discusses the dichotomy between China’s household consumption and its world-leading manufacturing sector, evaluates the new... https://www.scmp.com/economy/china-economy/article/3303369/economist-michael-pettis-chinas-consumption-paradox-and-pitfalls-trade-war?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3303369/economist-michael-pettis-chinas-consumption-paradox-and-pitfalls-trade-war?utm_source=rss_feed Sun, 23 Mar 2025 22:00:19 +0000 Incredibly, the world witnessed a striking split-screen last week: US President Donald Trump addressed a joint session of Congress while Chinese Premier Li Qiang delivered his annual work report at the “two sessions” parliamentary meetings. One speech was met with heckling from the opposition and support from the speaker’s own party members, while the other received only the latter. Despite the stark contrast between the speeches from the two countries’ leadership, there seems to be a degree of... https://www.scmp.com/opinion/world-opinion/article/3302135/yuan-internationalisation-us-re-industrialisation-fairy-tale?utm_source=rss_feed https://www.scmp.com/opinion/world-opinion/article/3302135/yuan-internationalisation-us-re-industrialisation-fairy-tale?utm_source=rss_feed Sun, 16 Mar 2025 08:30:15 +0000 China is determined to preserve the stability of the yuan amid an intensifying trade war with the United States, the country’s top financial officials told a press conference in Beijing on Thursday. “We will resolutely prevent exchange rate overshooting and ensure that the yuan remains basically stable at a reasonable and balanced level,” said Pan Gongsheng, governor of the People’s Bank of China (PBOC). The comment is Beijing’s first official response following US President Donald Trump’s... https://www.scmp.com/economy/china-economy/article/3301359/china-determined-resolutely-keep-yuan-stable-amid-us-tariff-pressure?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3301359/china-determined-resolutely-keep-yuan-stable-amid-us-tariff-pressure?utm_source=rss_feed Thu, 06 Mar 2025 13:00:51 +0000 US President Donald Trump’s latest accusation of China’s trade advantage via yuan depreciation suggests his sights are set on reducing the US trade deficit, according to analysts who also noted that a priority of China’s central bank is stabilising the currency against the backdrop of a strong dollar and mounting tariff risks. They contended that Trump’s warning on Monday – that China and Japan “can’t continue to reduce” their currencies because it is “unfair” to the US – clashes with Beijing’s... https://www.scmp.com/economy/global-economy/article/3301039/economists-rebuke-trumps-currency-claims-explain-why-beijing-wants-yuan-stable?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3301039/economists-rebuke-trumps-currency-claims-explain-why-beijing-wants-yuan-stable?utm_source=rss_feed Tue, 04 Mar 2025 13:30:08 +0000 China’s so-called panda bonds – yuan-denominated debt securities issued by offshore companies operating on the mainland – have exceeded Japan’s samurai-bond market in size on the back of favourable regulations and market conditions, marking a milestone in the internationalisation of the Chinese currency. Outstanding panda bonds have reached US$45 billion, exceeding the volume of yen-denominated samurai bonds, but account for just a small fraction of China’s overall bond market, according to a... https://www.scmp.com/economy/china-economy/article/3300516/panda-vs-samurai-chinas-panda-bond-market-size-tops-japans-amid-yuan-internationalisation?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3300516/panda-vs-samurai-chinas-panda-bond-market-size-tops-japans-amid-yuan-internationalisation?utm_source=rss_feed Fri, 28 Feb 2025 08:00:16 +0000 Hugh Harsono Hugh Harsono On January 23, US President Donald Trump issued an executive order creating a working group for a regulatory framework for digital assets. Ironically, this order also imposed a ban on US central bank digital currency (CBDC) development, effectively halting plans to create a digital version of the dollar. This decision could unintentionally accelerate global de-dollarisation, as countries and businesses may increasingly turn to alternatives like China’s digital yuan for cross-border transactions,... https://www.scmp.com/opinion/world-opinion/article/3297187/trumps-digital-dollar-ban-opens-door-chinas-yuan?utm_source=rss_feed https://www.scmp.com/opinion/world-opinion/article/3297187/trumps-digital-dollar-ban-opens-door-chinas-yuan?utm_source=rss_feed Tue, 04 Feb 2025 08:30:08 +0000 China’s central bank has mounted a stronger defence for the yuan and the domestic foreign exchange market, as the country braces for the return of Donald Trump who is expected to bring greater headwinds to trade and the exchange rate. The People’s Bank of China and the State Administration of Foreign Exchange announced jointly on Monday an increase in the macroprudential adjustment parameter for the cross-border financing of enterprises and financial institutions, from 1.5 to 1.75 – a move... https://www.scmp.com/economy/china-economy/article/3294504/boost-chinas-yuan-central-bank-makes-it-easier-firms-borrow-more-foreign-debt?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3294504/boost-chinas-yuan-central-bank-makes-it-easier-firms-borrow-more-foreign-debt?utm_source=rss_feed Mon, 13 Jan 2025 06:20:43 +0000 China’s central bank has signalled its resolve to stabilise the yuan’s exchange rate, with a stronger tone taken during its latest policy meetings, as the Chinese currency looks to be directly affected by US president-elect Donald Trump’s policies. In its fourth-quarter monetary policy meeting, the People’s Bank of China highlighted “the resilience of the foreign-exchange market”, a shift from its previous focus on “exchange-rate flexibility”. It will also “resolutely” prevent the formation of... https://www.scmp.com/economy/china-economy/article/3293587/chinas-central-bank-rhetoric-yuan-stability-takes-aim-depreciation-risks?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3293587/chinas-central-bank-rhetoric-yuan-stability-takes-aim-depreciation-risks?utm_source=rss_feed Mon, 06 Jan 2025 08:15:08 +0000 With the offshore yuan having plunged to its lowest level in more than two years against the US dollar as Donald Trump’s return to the White House nears, analysts forecast prolonged pressure on Asian currencies amid heightened global uncertainties and renewed tariff threats. On the last trading day in 2024, the yuan touched 7.3698 per US dollar and reached its weakest level since October 2022, when the rate surpassed 7.37, according to Chinese financial data provider Wind. A higher number means... https://www.scmp.com/economy/china-economy/article/3293148/chinas-yuan-hits-two-year-low-asian-currency-pressure-rises-us-dollar-strengthens?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3293148/chinas-yuan-hits-two-year-low-asian-currency-pressure-rises-us-dollar-strengthens?utm_source=rss_feed Thu, 02 Jan 2025 07:48:39 +0000 The offshore yuan weakened overnight and broke a key psychological level of 7.3 per US dollar, as the US Federal Reserve’s unexpectedly cautious forecast for rate cuts next year strengthened the dollar. In the early hours of Thursday, the yuan depreciated to over 7.32 per US dollar – a higher number signals relative yuan weakness – reaching its lowest level since November 2023, while the latest data showed an uptick in the Chinese currency’s share of global payments. The yuan’s decline was... https://www.scmp.com/economy/economic-indicators/article/3291502/us-feds-hawkish-rate-cut-forecast-slams-chinas-yuan?utm_source=rss_feed https://www.scmp.com/economy/economic-indicators/article/3291502/us-feds-hawkish-rate-cut-forecast-slams-chinas-yuan?utm_source=rss_feed Thu, 19 Dec 2024 05:32:35 +0000 Sylvia Ma Sylvia Ma The downfall of Yao Qian, who spearheaded China’s digital currency design at the People’s Bank of China, has raised concerns over the digital yuan’s development. China’s top anti-corruption watchdog has accused Yao, who was the inaugural director of the PBOC’s institute overseeing digital currency research, and later head of the securities regulator’s tech-supervision department, of taking bribes through cryptocurrencies. The country’s first cryptocurrency-related corruption case raises... https://www.scmp.com/economy/china-economy/article/3288723/chinas-digital-yuan-roared-out-gate-stumbling-blocks-could-give-it-pause?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3288723/chinas-digital-yuan-roared-out-gate-stumbling-blocks-could-give-it-pause?utm_source=rss_feed Sun, 01 Dec 2024 01:00:11 +0000 Beijing should adjust its strategy in managing China’s US$3.3 trillion worth of foreign-exchange reserves, given the lingering threat of US financial sanctions, according to a prominent Chinese economist. The warning by Zhang Ming, deputy director of the Chinese Academy of Social Sciences’ Institute of Finance and Banking, is the latest high-profile call for diversification and reducing exposure to the US dollar. It also reflects the rising concern in Beijing’s policy circles that China needs to... https://www.scmp.com/economy/china-economy/article/3284850/chinas-forex-reserves-should-move-away-us-dollar-curb-risks-economist-zhang-ming?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3284850/chinas-forex-reserves-should-move-away-us-dollar-curb-risks-economist-zhang-ming?utm_source=rss_feed Fri, 01 Nov 2024 12:30:20 +0000 Trade growth between China and Russia has continued to slow after a year of rapid expansion, as settlement becomes a bigger obstacle amid secondary sanctions from the United States over Russia’s war in Ukraine. In the first eight months of the year, trade volume between the two countries was US$158.5 billion, a year-on-year increase of 1.9 per cent, according to data released by China Customs this month. The slowing pace has occurred as some Chinese financial institutions signalled plans to... https://www.scmp.com/economy/global-economy/article/3279018/china-russia-trade-inches-us-sanctions-and-payment-issues-strain-growth?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3279018/china-russia-trade-inches-us-sanctions-and-payment-issues-strain-growth?utm_source=rss_feed Wed, 18 Sep 2024 13:00:17 +0000 Overseas use of the Chinese yuan grew significantly last year due to its pivotal role in global supply chains and continuous high-quality economic development, according to a new study. The yuan internationalisation index, which aims to track how the Chinese currency performs globally, showed year-on-year growth of 22.9 per cent in 2023, according to a report released by Renmin University on Saturday. “As the quality of a country’s financial system rises in the process of servicing global supply... https://www.scmp.com/economy/economic-indicators/article/3272194/global-use-chinas-yuan-sharply-beating-pound-and-yen-internationalisation-index?utm_source=rss_feed https://www.scmp.com/economy/economic-indicators/article/3272194/global-use-chinas-yuan-sharply-beating-pound-and-yen-internationalisation-index?utm_source=rss_feed Sun, 28 Jul 2024 23:00:13 +0000 In China’s 10-year treasury bond market, the Ministry of Finance is looking to manage liquidity amid mounting concerns among policymakers that long-term yields have been too low. The ministry said online on Monday that it planned to sell up to 2.5 billion yuan (US$344 million) worth of two types of 10-year treasury bonds on Tuesday to “improve the liquidity of the secondary market for government bonds, and to improve the government bond yield curve that reflects the relationship between market... https://www.scmp.com/economy/economic-indicators/article/3270512/chinas-bond-rally-sends-yields-record-lows-prompting-concerns-disrupting-economy?utm_source=rss_feed https://www.scmp.com/economy/economic-indicators/article/3270512/chinas-bond-rally-sends-yields-record-lows-prompting-concerns-disrupting-economy?utm_source=rss_feed Mon, 15 Jul 2024 23:00:13 +0000 Once abundantly dispersed across China to serve the banking needs of more than a billion people, physical bank branches and ATMs have seen their numbers dwindling as the public embraces e-payment platforms and financial institutions cut costs. And as most of the public can use their phones to conduct banking and monetary transactions, closures have gradually outpaced new installations. In the first half of this year, 1,126 bank branches closed while just 968 new ones were approved, the... https://www.scmp.com/economy/economic-indicators/article/3268870/chinas-bank-branches-atms-dwindle-amid-e-payments-and-cashless-shift?utm_source=rss_feed https://www.scmp.com/economy/economic-indicators/article/3268870/chinas-bank-branches-atms-dwindle-amid-e-payments-and-cashless-shift?utm_source=rss_feed Tue, 02 Jul 2024 10:30:18 +0000 Two years after an extended lockdown of Shanghai under the nation’s dynamic zero-Covid policy led to an exodus of expatriates, mainland China’s most international city is finally re-embracing a bustle of overseas visitors. More foreigners from a variety of countries have been seen in the city’s main streets and at tourist attractions in recent months, capitalising on China’s loosening of visa policies to lure back tourists – and their wallets – amid an economic downturn. However, much fewer are... https://www.scmp.com/economy/economic-indicators/article/3266049/china-changing-foreigners-return-shanghai-theyre-here-good-time-not-long-time?utm_source=rss_feed https://www.scmp.com/economy/economic-indicators/article/3266049/china-changing-foreigners-return-shanghai-theyre-here-good-time-not-long-time?utm_source=rss_feed Mon, 10 Jun 2024 22:00:16 +0000 Despite Beijing’s determination to boost overseas use of China’s currency, fresh survey findings indicate that an “unwillingness among trading partners to use the yuan” remains the biggest obstacle to cross-border trade settlements. About 47.7 per cent of surveyed enterprises said the lack of interest among trading partners to use yuan was the main hindrance to its proliferation, according to the first-quarter Cross-Border Yuan Insight report – the results of which were jointly released on... https://www.scmp.com/economy/economic-indicators/article/3264441/chinas-yuan-strategy-not-paying-trade-partners-survey-finds-policy-and-market-risks-are?utm_source=rss_feed https://www.scmp.com/economy/economic-indicators/article/3264441/chinas-yuan-strategy-not-paying-trade-partners-survey-finds-policy-and-market-risks-are?utm_source=rss_feed Tue, 28 May 2024 22:00:19 +0000 Richard Koo, chief economist at the Nomura Research Institute, has advised several Japanese prime ministers on economic issues. He is known for elaborating on the notion of a “balance-sheet recession” and explaining how it led to Japan’s so-called Great Recession. This interview first appeared in SCMP Plus. For other interviews in the Open Questions series, click here. Whereas a typical recession is considered to be a natural result of fluctuations in the business cycle, a balance-sheet... https://www.scmp.com/economy/china-economy/article/3263104/what-must-china-do-avoid-japan-type-recession-economist-richard-koo-adds-why-chinese-situation-far?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3263104/what-must-china-do-avoid-japan-type-recession-economist-richard-koo-adds-why-chinese-situation-far?utm_source=rss_feed Sun, 19 May 2024 22:00:23 +0000 Since a viral hashtag – roughly translated as “diamonds collapse as gold goes crazy” – racked up nearly 100 million views on Chinese social media earlier this month, some diamond owners have been trading stories of regret. “I bought a diamond ring, but since the wedding, it has been sitting in its box gathering dust,” lamented one user on the widely popular Weibo microblog service. “Equating diamonds with love is just marketing brainwash.” “The most confusing thing about the 21st century is... https://www.scmp.com/economy/economic-indicators/article/3263103/chinas-diamond-industry-having-hard-time-any-way-you-cut-it-more-consumers-go-gold?utm_source=rss_feed https://www.scmp.com/economy/economic-indicators/article/3263103/chinas-diamond-industry-having-hard-time-any-way-you-cut-it-more-consumers-go-gold?utm_source=rss_feed Sun, 19 May 2024 04:30:18 +0000 A version of this article has also been published by The Korea Times in partnership with the South China Morning Post. During China’s ongoing “golden week” holiday, South Korea is expected to see a decline in Chinese tourists compared with pre-pandemic levels, travel agents said, as holidaymakers are increasingly favouring visa-free destinations and neighbouring Japan, enticed by a weakened yen. The shift in tourist preferences presents challenges for South Korea’s tourism sector as it grapples... https://www.scmp.com/economy/global-economy/article/3261360/labour-day-break-chinese-tourists-journey-japan-visa-free-destinations-south-koreas-appeal-wanes?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3261360/labour-day-break-chinese-tourists-journey-japan-visa-free-destinations-south-koreas-appeal-wanes?utm_source=rss_feed Fri, 03 May 2024 10:00:12 +0000 With the US Federal Reserve poised to keep borrowing rates higher for longer – a move that would maintain pressure on Asian currencies – analysts expect that China’s central bank is likely to let the yuan weaken while also being mindful of capital outflows and trade conflicts. As widely expected, the US Fed on Wednesday left its interest rate target range unchanged at 5.25 to 5.50 per cent, with chairman Jerome Powell reaffirming the need for more evidence of inflation cooling before the next... https://www.scmp.com/economy/global-economy/article/3261220/asia-us-dollars-growing-strength-gives-rise-stability-concerns-suspected-rate-intervention?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3261220/asia-us-dollars-growing-strength-gives-rise-stability-concerns-suspected-rate-intervention?utm_source=rss_feed Thu, 02 May 2024 15:00:13 +0000 As the Japanese yen tests its lowest levels since 1990, all eyes are on Tokyo to see if policymakers will act to break its fall. Instead, we should be looking at Beijing. Nothing would stabilise China’s economy faster than a weaker yuan. It would provide a quick and timely boost amid a deepening property crisis, deflationary pressures and record youth unemployment. And President Xi Jinping might conclude that the yen’s drop affords China the geopolitical cover to engineer a weaker yuan. Let’s... https://www.scmp.com/opinion/asia-opinion/article/3259080/yen-sinks-japan-must-avoid-goading-china-currency-war?utm_source=rss_feed https://www.scmp.com/opinion/asia-opinion/article/3259080/yen-sinks-japan-must-avoid-goading-china-currency-war?utm_source=rss_feed Wed, 17 Apr 2024 08:30:16 +0000