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Currencies

Currencies
Currency market action focused on developments with the Chinese yuan and the Hong Kong dollar.
A modest rebound driven by technical buying on Friday did little to alter the broader downtrend, with gold prices hovering around the US$4,500 level. Photo: DPA
Commodities

Gold slides as hawkish Fed and strong US dollar override geopolitical fears

Market watchers point to fading hopes of interest rate cuts and oil-driven inflation concerns as key drivers of the decline.

US-China relations

US-China split on digital money deepens as stablecoin debate stalls Clarity Act

Banking & finance

How China opened the door to creating a direct rival to US payment systems

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Hong Kong economy

Exclusive | Hong Kong tipped to be world’s top financial hub amid global yuan expansion plan

National People’s Congress deputy Li Yinquan says Hong Kong to gain substantially from Beijing’s push to internationalise yuan’s reach.

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Lunar New Year fireworks in Hong Kong. Photo: Sam Tsang
Hong Kong economy

Exclusive | Fears over Exchange Fund discipline overblown: Hong Kong’s dollar peg architect

John Greenwood says drawing HK$150 billion from the fund is justified, calling the move a legitimate, long‑term investment.

Yuan

Beijing vows yuan stability, fires back at currency-depreciation claims

PBOC governor reaffirms yuan stability, refuting trade partners’ accusations ahead of critical US talks in Paris.

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Yuan

As the yuan sizzles, China’s central bank deploys double-barrelled policy tweak

Regulators refine cross-border rules and cut the foreign exchange risk reserve ratio for forward forex sales to zero, aiming to provide stable offshore liquidity and help firms manage risks.

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The People’s Bank of China has rolled out a pair of measures to lower foreign exchange hedging costs and support cross-border yuan financing. Photo: Shutterstock
United States

Macroscope | Normalisation of Trump’s chaos can only go so far

Markets assuming Trump will chicken out and downplaying risks contribute to the normalisation of the US president’s chaotic behaviour.

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China manufacturing

A boat in every dock? Chinese billionaire unveils plan for mass yacht production

JD.com founder Richard Liu has launched a nautical brand with a massive investment in yacht production, aiming to make ownership affordable.

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Brics

Why Brics can’t do away with US dollar even as currency cooperation rises

Brazil says there has been no proposal or talks within Brics to create a common currency across the bloc.

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Brics leaders meet at their 2025 summit in Rio de Janeiro, Brazil. Photo: AFP
Banking & finance

Why China’s rise as a ‘financial superpower’ could depend on Hong Kong

From the yuan’s growth as a global currency to IPO funding to tokenisation, the city is a linchpin in Beijing’s ambitions.

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Illustration: Lau Ka-kuen
Hong Kong budget 2026-27

Hong Kong budget 2026-27: should the coming blueprint boost yuan’s global push?

Experts say Hong Kong has ‘distinct advantages’ that can support the country’s financial development amid geopolitical uncertainties.

Banking & finance

Macroscope | US dollar weakness is no game changer for a globalised yuan

Beijing will seize on the crisis to promote the yuan, but without capital account liberalisation – essential for a truly global currency – its rise will remain limited.

China-Africa relations

As China seeks to globalise the yuan, it finds a new vehicle in Africa

Africa Finance Corporation executive says entering Chinese capital markets is a ‘natural evolution’.

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Multilateral lender Africa Finance Corporation (AFC) has confirmed that a debut panda bond issuance is “on the table for this year”. Photo: Getty Images
Banking & finance

China lets yuan rise to strongest level in years as de-dollarisation trend grows

China’s central bank sets the yuan’s midpoint rate at its strongest level since mid-2023, as jitters over the US dollar buoy the Chinese currency.

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The yuan has steadily appreciated against the US dollar in recent months amid a growing de-dollarisation trend among global investors. Photo: AFP
Cryptocurrency

Scams and outflows: why China slammed the door on real-world asset tokens

Beijing’s clampdown aims to help safeguard financial security and monetary sovereignty while leaving room for regulated fintech innovation in Hong Kong.

China trade

UK, China boost financial ties, deepen London’s role as offshore yuan hub

New pact designates a new yuan clearing bank, boosts cross-listings and expands green finance, accelerating the international use of China’s currency.

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US-China trade war

US Treasury chief warns of China’s push for digital asset dominance

Scott Bessent tells senators the US must pass the Clarity Act to counter Hong Kong’s ‘sandbox’ and maintain global financial leadership.

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US Treasury Secretary Scott Bessent during a Senate Banking Committee hearing on Thursday. Photo: Reuters
Crime in Hong Kong

Are Hong Kong foreign exchange firms secure enough?

After a shocking 51 million yen robbery last week, the South China Morning Post examines the risks in the city’s cash exchange trade.

Yuan

Editorial | China well placed to take advantage of the shift away from the US dollar

A stable and strong yuan has international appeal, just as a reliable and strong China is being seen as the rock on which the global system should be rebuilt.

Banking & finance

Letters | As US dollar weakens, time to rethink Hong Kong dollar peg?

Readers discuss the dollar peg amid geopolitical volatility, an AI proposal for student well-being, public reactions to bus seat belts, and the viability of the cinema industry.

The yuan is increasingly being used in global trade finance, while the US president seemingly favours a weak dollar to remedy trade imbalances. Photo: dpa
Yuan

China is on a ‘strong currency’ mission to make the yuan a global reserve: Xi

Xi Jinping says the goal of becoming an international powerhouse is a long-term one and will rest on core foundations.

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Beijing has been pushing for the internationalisation of the yuan over the past decade or so, but its global footprint remains limited. Photo: Reuters
Japan

Macroscope | Could Japan stop being the ballast of the bond market?

A lower house election victory would give flight to Prime Minister Takaichi’s fiscal expansionism – and introduce upheaval far beyond Japan.

Hong Kong economy

Editorial | Hong Kong cannot take its Exchange Fund’s stellar year for granted

The fund posted a record gain last year, boosting the Hong Kong government’s fiscal health, but global headwinds must be heeded.

Hong Kong economy

Editorial | No better time for Hong Kong to strike its golden deal with Shanghai

Hong Kong’s ambitions to be a global hub for the trading and storage of the safe-haven asset get a lift from the spectacular gold rally.

People queue outside a gold dealer in Hong Kong on January 28. The price of the precious metal surpassed US$5,500, hitting a record amid the global uncertainty and turmoil set off by US President Donald Trump’s policies. Photo: AFP
Commodities

Runaway gold: why even Wall Street can’t keep up with the metal’s record ascent

Some Chinese funds halt subscriptions as uncertainty fuels volatility in the metals market, while Hong Kong’s first gold exchange-traded fund surges on its debut.

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Gold’s current price represents a historic gain of more than 20 per cent in the first four weeks of the year. Photo: Shutterstock
Hong Kong Monetary Authority (HKMA)

Hong Kong’s Exchange Fund reports record earnings in 2025

The Exchange Fund’s full-year earnings jumped 51 per cent to HK$331 billion (US$42 billion), from HK$218.8 billion in 2024.

Banking & finance

Trump says the US dollar can move like a yo-yo. Will Treasuries be left hanging?

With the US president levelling threats at enemies, allies and his own central bank, alternatives like gold and Chinese assets are gaining appeal.

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