China’s November foreign exchange reserves fall more than expected amid focus on trade deal

A bank employee counts U.S. currency and Chinese currency notes at a bank on August 6, 2019 in China. China’s foreign exchange reserves fell $9 billion in November to $3.096 trillion, central bank data showed on Saturday, as Washington and Beijing remained locked in negotiations over an interim trade agreement. Analysts polled by Reuters had expected China’s reserves, the world’s largest, would fall $4 billion to $3.101 trillion in November. The value of the country’s gold reserves fell to $91.4


A bank employee counts U.S. currency and Chinese currency notes at a bank on August 6, 2019 in China.
China’s foreign exchange reserves fell $9 billion in November to $3.096 trillion, central bank data showed on Saturday, as Washington and Beijing remained locked in negotiations over an interim trade agreement.
Analysts polled by Reuters had expected China’s reserves, the world’s largest, would fall $4 billion to $3.101 trillion in November.
The value of the country’s gold reserves fell to $91.4
China’s November foreign exchange reserves fall more than expected amid focus on trade deal Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-07
Keywords: news, cnbc, companies, focus, reserves, foreign, fall, trade, billion, amid, exchange, expected, end, chinas, deal, bank, yuan, months, chinese, trillion


China's November foreign exchange reserves fall more than expected amid focus on trade deal

A bank employee counts U.S. currency and Chinese currency notes at a bank on August 6, 2019 in China.

China’s foreign exchange reserves fell $9 billion in November to $3.096 trillion, central bank data showed on Saturday, as Washington and Beijing remained locked in negotiations over an interim trade agreement.

Analysts polled by Reuters had expected China’s reserves, the world’s largest, would fall $4 billion to $3.101 trillion in November.

Despite the slowing Chinese economy and escalating U.S.-China trade war, its reserves have been gradually rising since late 2018, helped by tight capital controls and rising inflows from foreign investors who are snapping up the country’s stocks and bonds.

Modest changes in reserve levels in recent months have been largely ascribed to fluctuations in global exchange rates and the value of assets that China holds such as foreign bonds.

The yuan has been driven largely by twists and turns in the 17-month long trade war between China and the United States.

After sliding sharply this summer as the dispute suddenly escalated, the yuan rose for three straight months through November on hopes of a trade truce, only to slide again in early December as tensions between Washington and Beijing flared.

Fresh U.S. tariffs on Chinese goods are set to take effect on Dec. 15.

It gained 0.12% against the dollar in November, but remains about 2.3% weaker for the year to date.

The dollar, meanwhile, rose about 1 percent against a basket of other major currencies in November.

The value of the country’s gold reserves fell to $91.47 billion at the end of November from $94.65 billion at the end of October.

China held 62.64 million fine troy ounces of gold at the end of November, unchanged from October.

China’s economic growth cooled to 6.0% in the third quarter, the slowest pace in nearly 30 years, and many economists believe it will decelerate further into the upper 5% range in 2020.

Still, analysts note capital outflows have been modest compared with the last economic downturn in 2015-16, when policymakers burned through roughly $1 trillion in reserves supporting the yuan.

China’s central bank has started to slowly trim interest rates in recent months, and more reductions are expected in coming quarters to avert a sharper slowdown.

But analysts believe those cuts will likely be more gradual and smaller than those in 2015. If so, moves in the yuan are likely to be influenced more by trade developments than policy easing.


Company: cnbc, Activity: cnbc, Date: 2019-12-07
Keywords: news, cnbc, companies, focus, reserves, foreign, fall, trade, billion, amid, exchange, expected, end, chinas, deal, bank, yuan, months, chinese, trillion


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The pound sterling excites me, says strategist

The pound sterling excites me, says strategistSim Moh Siong of Bank of Singapore says there’s a good chance for further pound strength after the elections in the U.K. He also discusses the outlook for the Chinese yuan.


The pound sterling excites me, says strategistSim Moh Siong of Bank of Singapore says there’s a good chance for further pound strength after the elections in the U.K.
He also discusses the outlook for the Chinese yuan.
The pound sterling excites me, says strategist Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-03
Keywords: news, cnbc, companies, pound, sterling, singapore, theres, strategist, outlook, siong, yuan, excites, strategistsim, strength


The pound sterling excites me, says strategist

The pound sterling excites me, says strategist

Sim Moh Siong of Bank of Singapore says there’s a good chance for further pound strength after the elections in the U.K. He also discusses the outlook for the Chinese yuan.


Company: cnbc, Activity: cnbc, Date: 2019-12-03
Keywords: news, cnbc, companies, pound, sterling, singapore, theres, strategist, outlook, siong, yuan, excites, strategistsim, strength


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China will maintain ‘normal’ monetary policy as long as possible, says its central bank

A pedestrian walks past the People’s Bank of China (PBOC) headquarters on August 6, 2019 in Beijing, China. China’s central bank governor said on Sunday that the country should maintain “normal” monetary policy as long as possible since economic growth is still within a reasonable range and inflation is mild overall. The exchange rate of China’s yuan is decided by the markets’ supply and demand, it will not resort to competitive devaluation of the yuan, Yi Gang wrote in an article published by t


A pedestrian walks past the People’s Bank of China (PBOC) headquarters on August 6, 2019 in Beijing, China.
China’s central bank governor said on Sunday that the country should maintain “normal” monetary policy as long as possible since economic growth is still within a reasonable range and inflation is mild overall.
The exchange rate of China’s yuan is decided by the markets’ supply and demand, it will not resort to competitive devaluation of the yuan, Yi Gang wrote in an article published by t
China will maintain ‘normal’ monetary policy as long as possible, says its central bank Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-01
Keywords: news, cnbc, companies, normal, central, markets, china, walks, maintain, policy, monetary, yuan, long, wrote, possible, bank, theoretical, supply


China will maintain 'normal' monetary policy as long as possible, says its central bank

A pedestrian walks past the People’s Bank of China (PBOC) headquarters on August 6, 2019 in Beijing, China.

China’s central bank governor said on Sunday that the country should maintain “normal” monetary policy as long as possible since economic growth is still within a reasonable range and inflation is mild overall.

The exchange rate of China’s yuan is decided by the markets’ supply and demand, it will not resort to competitive devaluation of the yuan, Yi Gang wrote in an article published by the leading Communist Party theoretical journal Qiushi.

China’s central bank will continue to promote reform of the yuan, and keep it basically stable on a reasonably balanced level, Yi said.

Yi also said China will strengthen the supervision of property financing markets.


Company: cnbc, Activity: cnbc, Date: 2019-12-01
Keywords: news, cnbc, companies, normal, central, markets, china, walks, maintain, policy, monetary, yuan, long, wrote, possible, bank, theoretical, supply


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China’s overseas financial links deepen despite trade tensions with US

U.S. one-hundred dollar banknotes and Chinese one-hundred yuan banknotes are arranged for a photograph in Hong Kong on April 15, 2019. Foreign money is still betting on China, regardless of a slowdown in its economic growth, or tense trade negotiations with the United States. “Beyond financial considerations, this issuance also reflects China’s ongoing efforts to integrate itself into global financial markets, and delivers a strong message that it welcomes foreign investors.” The Chinese governm


U.S. one-hundred dollar banknotes and Chinese one-hundred yuan banknotes are arranged for a photograph in Hong Kong on April 15, 2019.
Foreign money is still betting on China, regardless of a slowdown in its economic growth, or tense trade negotiations with the United States.
“Beyond financial considerations, this issuance also reflects China’s ongoing efforts to integrate itself into global financial markets, and delivers a strong message that it welcomes foreign investors.”
The Chinese governm
China’s overseas financial links deepen despite trade tensions with US Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-11-29  Authors: evelyn cheng
Keywords: news, cnbc, companies, chinas, trade, yuan, foreign, overseas, investors, china, international, financial, tensions, deepen, chinese, despite, issuance, local, links


China's overseas financial links deepen despite trade tensions with US

U.S. one-hundred dollar banknotes and Chinese one-hundred yuan banknotes are arranged for a photograph in Hong Kong on April 15, 2019.

Foreign money is still betting on China, regardless of a slowdown in its economic growth, or tense trade negotiations with the United States.

As global bond yields remain low, investors clamored for China’s biggest ever international sovereign bond sale on Tuesday, with orders for the $6 billion raise reaching 3.6 times the issuance, according to China’s Ministry of Finance.

“We still have a lot of investors who have confidence in investing in China,” Frank Zheng, head of international fixed income at China Asset Management Company, said in a phone interview Thursday, according to a CNBC translation of his Mandarin-language remarks.

The issuance yields for the four tranches of bonds ranged from 1.929% for a three-year term to 2.881% for a 20-year term, the finance ministry said.

“The tight spreads achieved provides a very positive signal on China’s fundamentals from an international investor’s perspective,” Rong Ren Goh, portfolio manager in Eastspring Investments’ fixed income team, said in an email. “Beyond financial considerations, this issuance also reflects China’s ongoing efforts to integrate itself into global financial markets, and delivers a strong message that it welcomes foreign investors.”

The Chinese government has picked up the pace of a long-touted opening of the local financial industry to foreign investors, peeling back limits on foreign stakes and quotas for foreign securities investment. The moves come as Beijing is under pressure from the U.S. to improve foreign access to Chinese markets, and needs to attract more capital into the local market.

Zhao Bowen, research director at Beijing-based Blue Stone Asset Management, pointed out that in the third quarter, China’s non-reserve financial assets broke a trend of running a surplus and instead posted a significant deficit that was greater than the current account surplus. Zhao also noted how trade tensions with the U.S. pushed the yuan weaker, giving Beijing more incentive to attract foreign capital.

While the majority of China’s debt (which has soared to a more-than-300% debt-to-GDP ratio) is denominated in local currency, Beijing needs U.S. dollars and other major foreign currencies for doing business with other countries, as the internationalization of the yuan makes slow progress.


Company: cnbc, Activity: cnbc, Date: 2019-11-29  Authors: evelyn cheng
Keywords: news, cnbc, companies, chinas, trade, yuan, foreign, overseas, investors, china, international, financial, tensions, deepen, chinese, despite, issuance, local, links


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Japan’s yen gains, yuan down on trade woes, Hong Kong strife

The Chinese yuan fell to a three-week low in onshore trade on concern that a failure to reach a deal to roll back U.S. tariffs could deal a fresh blow to China’s stuttering economy. Hong Kong has been rocked by months of increasingly violent protest against Chinese rule of the former British colony. The passage of a U.S. law supporting the protesters could undermine efforts to secure a trade deal. Elsewhere, China’s yuan fell in the onshore market to 7.0450 versus the dollar, the weakest since N


The Chinese yuan fell to a three-week low in onshore trade on concern that a failure to reach a deal to roll back U.S. tariffs could deal a fresh blow to China’s stuttering economy.
Hong Kong has been rocked by months of increasingly violent protest against Chinese rule of the former British colony.
The passage of a U.S. law supporting the protesters could undermine efforts to secure a trade deal.
Elsewhere, China’s yuan fell in the onshore market to 7.0450 versus the dollar, the weakest since N
Japan’s yen gains, yuan down on trade woes, Hong Kong strife Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-11-21
Keywords: news, cnbc, companies, woes, japans, versus, yen, hong, dollar, weaker, strife, gains, white, trade, kong, yuan, chinese, told, deal


Japan's yen gains, yuan down on trade woes, Hong Kong strife

Japanese yen banknotes of various denominations are arranged for a photograph in Tokyo, Japan, on July 22, 2015.

The Japanese yen firmed against the dollar on Thursday after sources close to the White House told Reuters that a U.S.-China trade deal is unlikely this year, shattering investor hopes of a partial agreement soon and boosting safe-haven assets.

The Chinese yuan fell to a three-week low in onshore trade on concern that a failure to reach a deal to roll back U.S. tariffs could deal a fresh blow to China’s stuttering economy.

Political tensions between Beijing and Washington also kept investors on edge after a source told Reuters that U.S. President Donald Trump is expected to sign into law two bills intended to support anti-government protesters in Hong Kong.

Hong Kong has been rocked by months of increasingly violent protest against Chinese rule of the former British colony. The passage of a U.S. law supporting the protesters could undermine efforts to secure a trade deal.

“The report from Reuters indicating that we might only see a trade deal next year has been driving some of the yen strength and that can also be seen as a source of some dollar strength,” said Fritz Louw, a currency strategist at MUFG in London.

“If you see more negative trade headlines, and with the potential signing in the U.S. of the HK human rights bill, the yen should strengthen some more.”

At 0825 GMT, the dollar was a tad weaker on the day at 108.54 yen.

Japan’s currency has rallied almost 1% from more than five-month lows hit against the greenback earlier this month.

The dollar was little changed at $1.1077 versus the euro and a touch weaker against the British pound at $1.2934.

Completion of a “phase one” U.S.-China trade deal could slide into next year, trade experts and people close to the White House told Reuters on Wednesday, as Beijing presses for more extensive tariff rollbacks, and the Trump administration counters with heightened demands of its own.

The next date to watch is Dec. 15, when U.S. tariffs on some $156 billion in Chinese goods are scheduled to take effect.

Analysts said that while trade war headlines have tended to hurt the U.S. dollar in the past by boosting expectations for interest rates cuts, the dollar was now likely to benefit from any trade-related jitters in world markets given the Federal Reserve is seen on pause.

Minutes released on Wednesday showed that the Fed, which hit pause in its easing cycle following a rate cut in October, is in no hurry to reassess the path of interest rates.

The European Central Bank releases the minutes from its October meeting later this session but this was not expected to have a significant impact on the euro.

Elsewhere, China’s yuan fell in the onshore market to 7.0450 versus the dollar, the weakest since Nov. 1, before steadying at 7.0372.

Offshore, the yuan slipped to 7.0533 per dollar, the lowest since Nov. 5, and then pared its losses.


Company: cnbc, Activity: cnbc, Date: 2019-11-21
Keywords: news, cnbc, companies, woes, japans, versus, yen, hong, dollar, weaker, strife, gains, white, trade, kong, yuan, chinese, told, deal


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Artificial intelligence is ‘enhancing’ healthcare: Doctor

Artificial intelligence is ‘enhancing’ healthcare: Doctor1 Hour AgoChun Yuan Chiang of IHDpay Group says artificial intelligence cannot completely replace the “high-touch” nature of medical care. However, technology can be helpful in diagnosis or in situations where patients have long, complicated medical histories, he says. Chiang was speaking on a panel with Jai Verma of Cigna International and Dai Ying of GE Healthcare.


Artificial intelligence is ‘enhancing’ healthcare: Doctor1 Hour AgoChun Yuan Chiang of IHDpay Group says artificial intelligence cannot completely replace the “high-touch” nature of medical care.
However, technology can be helpful in diagnosis or in situations where patients have long, complicated medical histories, he says.
Chiang was speaking on a panel with Jai Verma of Cigna International and Dai Ying of GE Healthcare.
Artificial intelligence is ‘enhancing’ healthcare: Doctor Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-11-19
Keywords: news, cnbc, companies, medical, ying, chiang, verma, doctor, yuan, healthcare, speaking, intelligence, artificial, enhancing, technology


Artificial intelligence is 'enhancing' healthcare: Doctor

Artificial intelligence is ‘enhancing’ healthcare: Doctor

1 Hour Ago

Chun Yuan Chiang of IHDpay Group says artificial intelligence cannot completely replace the “high-touch” nature of medical care. However, technology can be helpful in diagnosis or in situations where patients have long, complicated medical histories, he says. Chiang was speaking on a panel with Jai Verma of Cigna International and Dai Ying of GE Healthcare.


Company: cnbc, Activity: cnbc, Date: 2019-11-19
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Singles Day sales hit record high as Chinese buyers rack up credit card bills

A significant portion of sales during this year’s Singles Day shopping event in China came from spending on credit, according to estimates from analysts. For example, Alibaba-affiliate Ant Financial has a product called Huabei, which provides users with a revolving line of credit or installment purchase plans. The increased use of credit products was most apparent this past Monday, known as Singles Day in China. Their popularity, in addition to overall use of credit cards, was more apparent duri


A significant portion of sales during this year’s Singles Day shopping event in China came from spending on credit, according to estimates from analysts.
For example, Alibaba-affiliate Ant Financial has a product called Huabei, which provides users with a revolving line of credit or installment purchase plans.
The increased use of credit products was most apparent this past Monday, known as Singles Day in China.
Their popularity, in addition to overall use of credit cards, was more apparent duri
Singles Day sales hit record high as Chinese buyers rack up credit card bills Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-11-15  Authors: evelyn cheng
Keywords: news, cnbc, companies, card, yuan, purchase, singles, record, installment, huabei, credit, chinese, nov, high, day, sales, hit, china, plans, rack


Singles Day sales hit record high as Chinese buyers rack up credit card bills

A significant portion of sales during this year’s Singles Day shopping event in China came from spending on credit, according to estimates from analysts. While it’s common to use a credit card to shop in the U.S., China has been known for its high savings rate and preference for paying only with funds at hand. Even widely used mobile payment systems function more like a debit card. But consumer habits, especially among younger Chinese, are changing — thanks partly to growing consumerism and partly to the development of financial technology. For example, Alibaba-affiliate Ant Financial has a product called Huabei, which provides users with a revolving line of credit or installment purchase plans. JD.com has a similar payment product called Bai’tiao. The increased use of credit products was most apparent this past Monday, known as Singles Day in China. The annual shopping spree on Nov. 11 is spearheaded by Alibaba, which reported record sales of 268.4 billion yuan ($38.3 billion) across its shopping platforms this year. That’s a year-on-year increase of about 26% — slower than 2018’s 27% growth. From Nov. 1 to Nov. 11 overall, online retail sales topped 870 billion yuan, China’s Ministry of Commerce said Thursday.

During Singles Day this year, Kapronasia fintech analyst Leilei Wang estimates at least half of all purchases on Alibaba’s Taobao and Tmall e-commerce platforms were made using Huabei. “This type of consumer finance encourage a certain amount of consumption,” Wang said, noting younger consumers are typically more wiling to try out new ways of spending. During the shopping event, Tmall cut Huabei interest rates to zero on 8 million products — five times as many products as last year, according to a report from Ant Financial’s digital bank MyBank, cited by state news media Xinhua. A separate Xinhua article cited Ant Financial Digital Finance President Huang Hao saying that typically, businesses that open support for Huabei see transactions increase by 38%. Data for Huabei purchases during Singles Day was not available from Ant Financial. A representative for the company did not immediately respond to a request for comment. On social media, one user said that some of the difficulties after Singles Day include having to repay Huabei and picking up packages.

Banks build up their credit card business

China Merchants Bank said its credit card transactions on Nov. 11 hit a record 27.2 billion yuan, while Industrial and Commercial Bank of China (ICBC) said it processed at least 20 billion yuan on the same day. “Lending to corporations has a non-performing loan problem, so the banks across China are trying to diversify into the retail business,” Nicholas Zhu, banking analyst at Moody’s in Beijing, said in a phone interview. He noted some banks are working with stores to create installment purchase plans for consumers, which theoretically help those individuals build a credit history. The lack of a unified credit system in China has typically made it difficult for many people to get loans or a credit card, especially migrants working in large cities.

An Alipay digital payment app logo and smartphone sit on a desktop at the Wirecard AG headquarters in Munich, Germany, on Wednesday, Sept. 5, 2018. Matthias Doering | Bloomberg | Getty Images

But now, companies like Alibaba-affiliate Ant Financial have volumes of purchase and transaction data to better gauge creditworthiness with. “Overall the market data volume is increasing, so banks can improve their ability to reduce risks,” said Hang Qian, principal at consulting firm Oliver Wyman’s finance and risk, and public policy practice. That’s according to a CNBC translation of his Mandarin-language remarks.

Buying on installment more popular

In China, many credit cards also offer installment purchase plans. Their popularity, in addition to overall use of credit cards, was more apparent during this year’s Singles Day, Oliver Wyman’s Qian said. Buying on installment is more popular among Chinese and cheaper than using a revolving line of credit, he said. He estimated that use of installment purchase plans accounted for about 60% to 70% of credit use. Fenqile, an installment purchase e-commerce platform run by LexinFintech, said that during this year’s Singles Day, gross merchandise value broke 100 million yuan in half the time it took last year. GMV is a key industry metric measuring the total dollar value of merchandise sold. Fifteen-month and two-year plans were the most popular among Fenqile’s Generation Z users (roughly those born in the mid-to-late 1990s), with an average monthly payment of less than 200 yuan, the company said. Apple’s iPhone was the most popular smartphone on the platform, the company said, noting iPhone 11 sales during the first 8 hours of Nov. 11 were more than twice that of the first day the device was available on Fenqile.

Widespread fraud risk


Company: cnbc, Activity: cnbc, Date: 2019-11-15  Authors: evelyn cheng
Keywords: news, cnbc, companies, card, yuan, purchase, singles, record, installment, huabei, credit, chinese, nov, high, day, sales, hit, china, plans, rack


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China’s central bank injects 200 billion yuan to boost liquidity, keeps rate unchanged

China’s central bank extended 200 billion yuan ($28.60 billion) through its medium-term lending facility on Friday, the second time it has done so this month, while keeping the lending rate unchanged. The move to add long-term funds caught the market off guard as the central bank had already injected funds last week. In the short term, high consumer inflation was keeping policymakers from immediately cutting interest rates, he said. “But at least it has to release liquidity to support economic g


China’s central bank extended 200 billion yuan ($28.60 billion) through its medium-term lending facility on Friday, the second time it has done so this month, while keeping the lending rate unchanged.
The move to add long-term funds caught the market off guard as the central bank had already injected funds last week.
In the short term, high consumer inflation was keeping policymakers from immediately cutting interest rates, he said.
“But at least it has to release liquidity to support economic g
China’s central bank injects 200 billion yuan to boost liquidity, keeps rate unchanged Cached Page below :
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China's central bank injects 200 billion yuan to boost liquidity, keeps rate unchanged

Pedestrians walk past the People’s Bank of China headquarters in Beijing, China, on January 7, 2019.

China’s central bank extended 200 billion yuan ($28.60 billion) through its medium-term lending facility on Friday, the second time it has done so this month, while keeping the lending rate unchanged.

The move to add long-term funds caught the market off guard as the central bank had already injected funds last week.

Several traders said the cash injection was likely a response to tighter liquidity in the interbank market from late Thursday, which pushed up borrowing costs.

Nie Wen, economist at Hwabao Trust in Shanghai, said the fund injection via MLF loans was to make up for the shortfall in liquidity even after multiple reserve requirement ratio (RRR) cuts so far this year.

In the short term, high consumer inflation was keeping policymakers from immediately cutting interest rates, he said.

“But at least it has to release liquidity to support economic growth, especially after October’s sluggish credit lending data,” Nie added.

“Consumer price inflation is high, but the producer price index is still in a negative range. Companies’ real borrowing costs remain high.”


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Chinese yuan could strengthen to 6.90 per US dollar if ‘phase one’ deal is signed, says economist

The Chinese yuan could strengthen against the greenback if China and the U.S. sign a so-called phase one trade agreement, according to an economist from Credit Agricole. “There are of course doubts about this phase one deal. Chinese currency traded both onshore and offshore have been hovering around 7.0 yuan per dollar for the past month. Movements in the yuan have largely depended on developments in the U.S.-China trade war, now in its second year. That’s one reason why the currency could appre


The Chinese yuan could strengthen against the greenback if China and the U.S. sign a so-called phase one trade agreement, according to an economist from Credit Agricole.
“There are of course doubts about this phase one deal.
Chinese currency traded both onshore and offshore have been hovering around 7.0 yuan per dollar for the past month.
Movements in the yuan have largely depended on developments in the U.S.-China trade war, now in its second year.
That’s one reason why the currency could appre
Chinese yuan could strengthen to 6.90 per US dollar if ‘phase one’ deal is signed, says economist Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-11-14  Authors: yen nee lee
Keywords: news, cnbc, companies, phase, 690, signed, strengthen, theres, chinese, dollar, renminbi, currency, economist, trade, yuan, war, tariffs, deal


Chinese yuan could strengthen to 6.90 per US dollar if 'phase one' deal is signed, says economist

The Chinese yuan could strengthen against the greenback if China and the U.S. sign a so-called phase one trade agreement, according to an economist from Credit Agricole.

“We believe that if this phase one deal is done, including no more tariffs, then there’s room for renminbi to appreciate,” said Dariusz Kowalczyk, chief China economist at the French bank, referring to the other name of the Chinese currency.

“There are of course doubts about this phase one deal. But ultimately we believe there’s an 80% chance that it will be signed in this quarter and if that happens, the renminbi will probably drop to towards 6.90,” he told CNBC’s “Street Signs Asia” on Thursday.

Chinese currency traded both onshore and offshore have been hovering around 7.0 yuan per dollar for the past month. Onshore and offshore yuan last touched 6.90 against the greenback in August and July, respectively.

Movements in the yuan have largely depended on developments in the U.S.-China trade war, now in its second year. The two countries have slapped tariffs on each other’s products worth billions of dollars, which has weighed down the Chinese economy and currency.

But Kowalczyk said weakness in the yuan has “overcompensated” for the economic impact of tariffs. That’s one reason why the currency could appreciate on developments, such as the signing of the “phase one” trade deal, he explained.

“When you think of the big picture, what it has done since the start of the trade war practically in April-May 2018, the trade-weighted value of renminbi fell by 3.5%. But the average tariff level on Chinese exports globally, as a result of the U.S. tariffs on part of Chinese exports, increased by only 2.6%,” he said.

“So, the currency has overcompensated so far,” he added.


Company: cnbc, Activity: cnbc, Date: 2019-11-14  Authors: yen nee lee
Keywords: news, cnbc, companies, phase, 690, signed, strengthen, theres, chinese, dollar, renminbi, currency, economist, trade, yuan, war, tariffs, deal


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Baidu shares jump 4% as video streaming helps results beat expectations

Shares of Chinese internet giant Baidu surged over 4% in after-hours trade following better-than-expected results for the third quarter. Here are the highlights for the three months ended September 30:Revenue of 28.08 billion yuan ($3.93 billion, according to the earnings release exchange rate). Excluding items, earnings per share came in at 12.61 yuan, beating market expectations, but representing 34% year-on-year decline. Analysts polled by Refinitiv had expected 27.49 billion yuan in revenue


Shares of Chinese internet giant Baidu surged over 4% in after-hours trade following better-than-expected results for the third quarter.
Here are the highlights for the three months ended September 30:Revenue of 28.08 billion yuan ($3.93 billion, according to the earnings release exchange rate).
Excluding items, earnings per share came in at 12.61 yuan, beating market expectations, but representing 34% year-on-year decline.
Analysts polled by Refinitiv had expected 27.49 billion yuan in revenue
Baidu shares jump 4% as video streaming helps results beat expectations Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-11-07  Authors: arjun kharpal
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Baidu shares jump 4% as video streaming helps results beat expectations

Shares of Chinese internet giant Baidu surged over 4% in after-hours trade following better-than-expected results for the third quarter.

Here are the highlights for the three months ended September 30:

Revenue of 28.08 billion yuan ($3.93 billion, according to the earnings release exchange rate). That’s was relatively flat year-on-year.

Excluding items, earnings per share came in at 12.61 yuan, beating market expectations, but representing 34% year-on-year decline.

Analysts polled by Refinitiv had expected 27.49 billion yuan in revenue and adjusted earnings per share of 7.88 yuan.

Baidu has faced a number of headwinds this year including a slowing Chinese economy amid a protracted U.S.-China trade war, increased competition from new search players like TikTok owner ByteDance and increased scrutiny from regulators on the advertising market in the world’s second-largest economy.

Shares of Baidu have fallen 32% this year.

But the Chinese firm has been looking to diversify revenues, and reduce reliance on its core search business, by expanding into areas like driverless cars, artificial intelligence and streaming. The first two are viewed as future growth areas for the company, but its video platform iQiyi is already delivering the goods.


Company: cnbc, Activity: cnbc, Date: 2019-11-07  Authors: arjun kharpal
Keywords: news, cnbc, companies, market, video, baidu, search, increased, yuan, earnings, results, trade, expectations, chinese, billion, shares, share, beat, jump, streaming, helps


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