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    In this article CNY= .DXY The Chinese yuan has tumbled to two-year lows against the U.S. dollar in the last few weeks.Sopa Images | Lightrocket | Getty ImagesBEIJING — China's central bank has sent a strong signal it wants to keep the Chinese yuan from weakening too quickly against the U.S. dollar, economists said. For a second time this year, the People's Bank of China announced Monday it would reduce the amount of foreign currency banks need to hold. Such moves theoretically reduce the weakening pressure on the yuan, which has tumbled by more than 8% this year to two-year lows against the U.S. dollar. Chinese authorities typically emphasize the yuan's level versus a basket of currencies, against which the yuan has strengthened by about 1% over the last three months. However, Beijing's latest actions show how important the yuan-dollar exchange rate still is, Nomura's chief China economist Ting Lu and a team said in a report Monday. They gave two reasons: "First, in a year of the once-in-a-decade leadership reshuffle and with elevated US-China tensions, Chinese leaders...
    Hong Kong (CNN Business)Chinese stocks recorded their worst day in years as investors finally got a chance to react to the worsening coronavirus outbreak. The Shanghai Composite (SHCOMP) plummeted 7.7% and the Shenzhen Component Index fell nearly 8.5% on their first day of trading after an extended Lunar New Year holiday. They had been closed since January 24. The losses wiped out a combined $445 billion in market value.The plunge delivered Shanghai its worst day since August 2015's "Black Monday," when global markets were rattled by fears of an economic slowdown in China. Shenzhen, meanwhile, hadn't recorded a single-day percentage drop this bad since 2007.China's currency also fell. The yuan sank 1.6% in onshore trading, dropping below seven to one US dollar in its first day back from the holiday break. The yuan also weakened below the seven mark offshore, where it moves more freely and has been trading since last week. Read MoreWhile global markets have had several days to weigh the rapid spread of the coronavirus, this is the first chance that mainland China has had to react...
    Hong Kong (CNN Business)Chinese stocks slumped deeper into a bear market Tuesday and the yuan traded near a 17-month low as investors grow increasingly pessimistic about the impact of Covid-19 lockdowns on the world's second biggest economy.The Chinese currency traded at 6.57 to the US dollar in offshore trade, after plunging to its lowest level against the greenback since November 2020 on Monday. The Shanghai Composite index closed down 1.4%. It has now lost about 22% since its recent peak in September 2021. The yuan — also known as the renminbi — has lost more than 3% against the US dollar in the past week alone as rising Covid-19 cases in Beijing spark fears that the Chinese capital could join Shanghai and other major cities in lockdown. China's strict adherence to its zero Covid policies, coupled with a crackdown on Big Tech and private enterprise, a real estate slump and risks related to Russia's war in Ukraine, have triggered an unprecedented flight of capital by foreign investors in recent months.The yuan's fall over the last two months is in sharp...
    In this article US10YJason Lee | ReutersBEIJING — The rapid rise in the U.S. 10-year Treasury yield to three-year highs has erased its gap with its Chinese counterpart, something that hasn't happened for more than a decade. As the yields cross paths – the U.S. one rising above China's – that theoretically reverses an investment strategy that bought Chinese bonds for the greater return they offered relative to U.S. Treasurys. It's not immediately clear whether the move is sustained and big enough to have large-scale implications, but the development is a market signal that investors are watching. The U.S. 10-year Treasury yield traded near 2.857% as of Wednesday night, slightly below the Chinese 10-year government bond yield of 2.873%, according to Refinitiv Eikon data. The U.S. yield climbed above its Chinese counterpart early last week for the first time since 2010, and has tried to hold onto a small premium in the last few days. The market development reflects diverging monetary policy between the two countries, analysts said. The People's Bank of China is loosening monetary policy and cutting rates,...
    Hong Kong (CNN Business)China was hoping the Winter Olympics would be a watershed moment for the digital yuan, providing a global stage on which to parade its prowess in financial innovation.Instead, geopolitical tensions, the pandemic and China's insistence on stamping out every trace of Covid are spoiling the party, dealing a blow to one of the most ambitious digital currency projects on the planet.China is already on the verge of becoming a cashless society, but the vast majority of those electronic transactions happen on privately owned apps, outside of the immediate purview of the state. An official yuan would change that, giving Beijing an unprecedented amount of information about what people are spending their money on and where. The world's second largest economy has been trialing the digital yuan in Chinese cities for the last two years, as it prepares for a national rollout that could put China ahead of Europe and the United States in the global race to develop a state-backed digital currency.The timeline for that nationwide launch has yet to be decided, but Beijing almost certainly intended...
    Hong Kong (CNN Business)China is grappling with a slowing economy, yet its currency has rarely been stronger. The yuan is also outperforming the US dollar this year even as the Fed prepares to hike interest rates. So what gives?The Chinese currency has soared more than 8% in 2021, according to an index that tracks the yuan's performance against 24 other currencies. Based on that gauge — the CFETS RMB Index — it is just 0.26% short of its previous record high set in November 2015.The yuan has also gained ground on the dollar. The yuan has risen between 2.4% and 2.8% this year against the greenback — depending on whether it trades in China or offshore. Both versions are now at their highest levels against the dollar in three years or more. The offshore rate currently trades at 6.34 yuan per dollar, a level not seen since May 2018.Headed into December, the yuan's gain this year was "the best in the world," said Marc Chandler, managing director for Bannockburn Global Forex, an Ohio-based capital markets trading firm. Chinas economy is...
    In this article MFA driver packs delivery orders into the back of an electric motorcycle outside a Missfresh warehouse.Gilles Sabrie | Bloomberg | Getty ImagesGUANGZHOU, China — Two Chinese grocery delivery start-ups — Missfresh and Dingdong — have had uninspiring starts following their initial public offerings in the U.S. Investors are concerned about the cut-throat competition in the Chinese market around grocery deliveries and whether these companies will ever become profitable. Missfresh, which is backed by Chinese technology giant Tencent, went public on Friday on the Nasdaq, pricing its American depositary shares (ADS) at $13 each and raising around $273 million. Since then, shares have fallen by a third and closed at $8.65 on Tuesday. Meanwhile, rival Dingdong, which started trading on the New York Stock Exchange on Tuesday, closed roughly flat on its debut after pricing shares at $23.50 per ADS. After Missfresh's tough start, Dingdong actually reduced the size of its IPO from $357 million to $110 million, assuming the underwriters fully exercise their option to purchase additional shares.Read more about China from CNBC ProJPMorgan picks its favorite Chinese stocks...
    Hangzhou (CNN)In 2001, when their old home was demolished to make way for a new thoroughfare, Wang Zhenyuan and his wife didn't mind that their replacement apartment was a seventh-floor walkup. They were in their fifties and fit. But 20 years later, the former silk factory workers feel differently. "Our legs aren't so good anymore," 79-year-old Wang says with a friendly smile missing several teeth.Theirs is one of the most immediate problems to arise from China's aging population. As bureaucrats in Beijing fret about curbing the country's falling birth rate -- recently allowing up to three children per married couple -- and funding ever more pensions, seniors like Wang worry about simply getting up and down the stairs.The couple's neighborhood, Bigui Garden, in a suburb of the eastern Chinese city Hangzhou, is made up of rows of blocks, each fitted with an internal staircase and 12 apartments on the second to seventh floors.China has an enormous stock of stairs-only neighborhoods. Most were built before the turn of the millennium by the government, which preferred to construct towers not above six...
    In this article CNY=Jason Lee | ReutersBEIJING — China is trying to rein in the yuan as it surges to three-year highs against the U.S. dollar. A stronger yuan makes Chinese goods relatively more expensive to buyers overseas, and has spurred concerns about the competitiveness of Chinese exports — a major contributor to national economic growth. The Chinese yuan traded slightly weaker against the U.S. dollar Wednesday after the People's Bank of China set the yuan's daily midpoint at 6.3773 versus the greenback. The move reversed six straight trading days of stronger fixings since May 24, according to data from Wind Information. The PBOC has tried to allow the market to play a greater role in determining the yuan's exchange rate. But the central bank retains some control through daily midpoint fixings against the dollar, allowing the yuan to move 2% higher or lower from that level. The weaker fix followed the central bank's announcement late Monday that beginning June 15, financial institutions must increase the ratio of their foreign exchange deposits by 2 percentage points — to 7% from...
    Hong Kong (CNN)Xi Jinping wants China to learn how to make friends and influence people.Speaking at a study session for the Communist Party's top leadership on Monday, the Chinese President said it was important for the country to tell its story in a positive way, presenting the image of a "credible, lovable, and respectable China," according to state-run news agency Xinhua.He added that the Party's propaganda organizations need to make it clear to the world that Beijing wants "nothing but the Chinese people's well-being."Xi's vision makes sense. Since taking power in 2012, he has pushed for China to take a bigger role in global affairs, but aside from Russia and Pakistan, China has few strong diplomatic relationships with major world powers.What Xi didn't say was that his country currently has a big image problem in many parts of the world. A Pew Research report from late 2020 found that of 14 countries surveyed across Europe, North America and East Asia, every one had a majority negative view of China.Read MorePart of Beijing's image problem comes from the Covid-19 pandemic, and...
    VIDEO3:3903:39Chinese yuan at three-year highs, dollar near 12-month lows. Trading the movesTrading Nation The Chinese yuan is on a tear. The currency hit a three-year high in offshore markets on Thursday while the U.S. dollar index hovered near 12-month lows, accentuating an ongoing divergence. China's yuan has outperformed against the dollar since mid-2020. Two traders flagged several ways to play the shifting currency market on CNBC's "Trading Nation" on Thursday.1. Emerging market bondsThe widely anticipated dollar weakness gives investors an opportunity to put money to work abroad, said Tocqueville Asset Management portfolio manager John Petrides. He suggested playing the dollar-yuan divide via the VanEck Vectors J.P. Morgan EM Local Currency Bond ETF (EMLC), a basket of emerging market bonds denominated in local currencies. "You're getting near a 5% yield and you're investing in emerging market bonds because the world is less fearful about credit risks today than we were a year ago," he said. "About 10% of this ETF is geared towards China, so, you do participate in this trade ... and you pick up some yield in what's been...
    Visitors walk along the Badaling section of the Great Wall in Beijing, China, on Tuesday, May 4, 2021.Yan Cong | Bloomberg | Getty Images BEIJING — Millions of Chinese rushed to travel during the five-day Labor Day holiday, in yet another sign of gradual recovery in domestic consumption. May 1 to 5 marked the "hottest" public holiday for leisure travel since the coronavirus pandemic, Chinese travel booking site Trip.com said in a statement Wednesday translated by CNBC. The reemergence of Covid-19 on the outskirts of Beijing earlier this year prompted local authorities to restrict travel during the Spring Festival in February. Labor Day holiday bookings for hotels, car rentals and other travel more than tripled from the same period a year ago, and rose more than 30% from 2019, Trip.com said, without disclosing dollar amounts. Shanghai Disney Resort was among the top 10 destinations, including for those 21 years old and younger, according to Trip.com. Chinese consumers also spent 1.67 billion yuan ($260 million) at the movies during the holiday, primarily on domestic films, according to ticketing site Maoyan.VIDEO4:5904:59Hilton Worldwide...
    Hong Kong (CNN)The Academy Awards this year could have been a major moment of pride for China.Chloe Zhao, a Beijing-born filmmaker, made history Sunday by winning the best director Oscar for her movie "Nomadland" -- becoming the first woman of color and only the second woman to ever win the award. Zhao's movie also won best picture.But China is not celebrating -- at least not officially.On the contrary, this year's Oscars was not aired anywhere in China -- including on two major streaming platforms where the annual ceremony had been shown live in previous years. In Hong Kong, a leading broadcaster opted not to air the Oscars for the first time in more than half a century.Even as Zhao's victory makes headlines around the world, Chinese state media has remained conspicuously quiet. Hours after the announcement, no reports of her win could be found on the websites of state news agency Xinhua or state broadcaster CCTV. Social media posts sharing the news of her victory have also been censored.Read MoreThe official silence is in contrast to March, when Zhao won...
    Shanghai (China), March 31 (EFE) .- The Chinese technology company Huawei announced today that its net profit increased by 3.2% to 64.6 billion yuan (9.851 million dollars, 8,396 million euros) in 2020, year in the one that suffered the impact of the sanctions imposed by the United States Government. The company, which is not listed on the Stock Exchange, indicated that during 2020 its total turnover rose by 3.8% year-on-year to 891.4 billion yuan (135.932 million dollars, 115.850 million euros). After being blacklisted by Washington in May 2019 for alleged links with Chinese intelligence, the sanctions imposed by the US ended up preventing access to US components and technology such as the Android operating system, which meant that in The last quarter of 2020 will fall, for the first time in six years, from the ‘top 5’ of global mobile vendors. (c) EFE Agency
    Shanghai (China), March 16 (EFE) .- The Chinese technology ZTE reduced its net profit in 2020 by 17.25% to 4,260 million yuan (655.5 million dollars, 549.4 million euros) due to to the absence of extraordinary income, reported this Monday in a statement sent to the Hong Kong Stock Exchange. However, the company points out that, excluding the effects of “extraordinary items”, its profits would have risen more than 113%. The situation referred to in the document is the comparison with 2019, in which third quarter the firm divested assets and obtained an extraordinary income of about 2,660 million yuan (409.3 million dollars, 343.2 million euros) . In 2020, the turnover derived from ZTE operations grew by 11.8% to 101,451 million yuan (15,609 million dollars, 13,090 million euros). The company emphasizes that, despite the impact of the pandemic, it achieved “a vigorous expansion of its business” that brought it revenue increases in both the domestic and international markets. In 2020, the company’s assets grew more (+ 6.7%) than the debts did (+1.2%), which means that the ratio between both parties will...
    VIDEO5:0505:05Fed's Jerome Powell: Digital dollar is 'high-priority project for us'Squawk Alley Chinese officials have made no secret that their greatly accelerated efforts at introducing and distributing the digital yuan are an opening move in their long-term strategy to undermine the dollar's global supremacy and expand their influence. Despite that, leading U.S. financial officials have rolled their eyes at any suggestion that deeper dangers lurk for the dollar, and thus also for U.S. national security, in the global digital currency race. Even as China marches forward and bitcoin's value reaches $1 trillion, the Federal Reserve had been in no hurry to be a contestant. Until now. This week marked a public turning point for the most significant U.S. government officials engaged in international finance — Treasury Secretary Janet Yellen and Federal Reserve Chairman Jerome Powell. Josh Lipsky, director of the Atlantic Council's GeoEconomic Center, tweeted that it marked "the firing of a starting gun." At a New York Times event on Monday with Secretary Yellen, CNBC's Andrew Ross Sorkin prompted her most full-throated endorsement yet of a digital dollar, or Central...
    U.S President Donald Trump returns to the White House after news media declared Democratic U.S. presidential nominee Joe Biden to be the winner of the 2020 U.S. presidential election, in Washington, U.S., November 7, 2020.Carlos Barria | Reuters The Chinese yuan, which has steadily strengthened this year, spiked even further in the days leading up to and after Joe Biden's projected election victory. Analysts have flagged that a Biden win is likely to be more bullish for the Chinese currency. And indeed, investors seem to think so. As Biden's victory seemed to grow increasingly likely last week, the offshore yuan rallied to below the 6.60 mark. It hit a 28-month peak on Monday after he became the projected winner and appreciated even further after. "Ostensibly, (offshore yuan) reactions suggest that a Trump victory is deemed to be far more negative for China, in contrast to a Biden Presidency, seen to lend some semblance of stability and interim relief," Vishnu Varathan, head of economics and strategy at Mizuho Bank, wrote in a note late last week. He noted U.S. President Donald...
    VIDEO3:1203:12Stars are 'really lining up' for a stronger Chinese yuan: UBSStreet Signs Asia SINGAPORE — The Chinese yuan is set to see further gains in the short term, according to UBS Global Wealth Management's Dominic Schnider. "The stars are really lining up for a stronger (Chinese yuan)," Schnider, head of commodities and Asia-Pacific foreign exchange/macro at UBS told CNBC's "Street Signs Asia" on Wednesday. The Chinese currency has strengthened significantly so far this year, and data releases continue to show the country powering ahead of its global peers in its recovery from the coronavirus pandemic. As of Friday morning Singapore time, the onshore Chinese yuan sat at 6.6891 against the greenback, nearly 4% stronger since the start of the year. The Chinese currency's offshore counterpart — which trades more freely than the onshore yuan — traded at 6.689 per dollar. It has also gained almost 4% against the U.S. dollar since the beginning of the year. China's onshore yuan, also known as the renminbi, trades within a narrow band stipulated by the central bank, which steps in to buy or...
    Jason Lee | Reuters BEIJING — China's foreign exchange regulator told businesses Friday to prepare for more volatility in the yuan. The Chinese currency, also known as the renminbi, strengthened roughly 1% this week against the U.S. dollar to levels not seen since July 2018. Less than five months ago, the yuan was at its weakest against the greenback since early 2008. Although that is based on a midpoint set by the central bank, the People's Bank of China, Beijing has been allowing markets to play a greater role in the exchange rate. One-year implied volatility of the yuan has climbed to 5%, versus less than 2% for previous years, indicating a basis of "increased flexibility" in the exchange rate, State Administration of Foreign Exchange spokeswoman Wang Chunying told reporters on Friday. "In face of exchange rate fluctuations, businesses should strengthen their risk prevention awareness," Wang said, according to a CNBC translation of her Mandarin-language remarks. She said that rather than expect one-way strengthening or weakening of the yuan, businesses should prepare for two-way moves in the exchange rate, and hedge...
    Democratic presidential nominee Joe Biden arrives to speak at a drive-in campaign rally at Riverside High School on October 18, 2020 in Durham, North Carolina.Drew Angerer | Getty Images A win for Democratic presidential nominee Joe Biden in the U.S. election next month could prove to be bullish for the Chinese yuan, analysts said. A "balanced outlook" for the election "should reduce the risk premium" for the Chinese currency, analysts at Swiss bank Lombard Odier wrote in a report on Tuesday. "We assume a Biden win that reduces some trading uncertainty," they said. "Biden's presidency could lead to a more rational approach to bilateral trade — even if his team could prove as hawkish on China as Trump's on other matters." Under President Donald Trump's administration, the U.S. and China have levied billions of dollars worth of tariffs on each other's goods in a protracted trade dispute. Dropping those tariffs could lead to greater demand for Chinese goods and, correspondingly, the Chinese currency. Republicans have largely embraced Trump's "America First" agenda, abandoning traditional party goals such as unfettered trade. Biden has...
    VIDEO2:2202:22Chinese yuan may trade around 6.65 by end-2020, says strategistSquawk Box Asia SINGAPORE — The Chinese yuan will continue to strengthen against the U.S. dollar, even though China's central bank has taken steps to curb its currency appreciation, analysts told CNBC. The onshore Chinese currency appreciated by nearly 3.9% since the start of 2020 before the People's Bank of China changed rules over the weekend, making it cheaper for traders to bet against the yuan. The yuan's year-to-date gains against the greenback were pared after the announcement — to about 3.4%, as of Thursday morning Singapore time. In general, though, Marc Chandler, chief market strategist at Bannockburn Global Forex, said the PBOC's move is "a small technical adjustment." "I think it's just a mild protest, a mild pushback against the sharp appreciation" of the yuan, he told CNBC's "Squawk Box Asia" on Tuesday. "I'm not sure that this is a big change of direction and I'd still be looking for the (yuan) to finish stronger, maybe closer to 6.65 before the end of the year," he said. The onshore Chinese...
    West Virginia VA hospital deaths: 6 families reach tentative settlements The best drive-thru restaurants in the USA Chinese shoppers spend big during the Golden Week holidays — a sign consumption is on the mend From Oct. 1 to 8, duty-free sales in the tropical island province of Hainan more than doubled from last year — rising 148.7% — to 1.04 billion yuan ($155 million), according to the local customs agency. Total sales on Tmall Global, Alibaba's primary e-commerce platform for overseas brands looking to reach China, rose by 79% during the first seven days of the month from a year ago, according to the company, which did not disclose a monetary figure. Most Chinese tourists come from China's middle class, who are less affected than low-income groups by the coronavirus and are now spending a lot on luxury products, said Jianguang Shen, chief economist at JD Digits, which was spun off from Chinese e-commerce company JD.com. © Provided by CNBC People wearing face masks walk along Qianmen street to shop during the country's national BEIJING...
    A bank employee counts U.S. currency and Chinese currency notes at a bank on August 6, 2019 in China.Xu Jinbai | Visual China Group | Getty Images The Chinese yuan fell on Monday following recent months of rallying. The weakness was triggered after the central bank changed rules on Saturday that made it cheaper for traders to short the currency. Shorting involves selling a borrowed asset, which can be a stock or currency, with the view that it will depreciate and can be bought back later at a lower price. Over the weekend, the People's Bank of China (PBOC) cut the forex risk reserve ratio for forward contracts — from 20% to zero, according to a central bank statement. Banks used to hold 20% of sales for some currency forward contracts, which essentially lock in the exchange rate for the sale of a currency on a future date. They no longer have to do so.Overall, what this tells us is that … they're definitely trying to give a signal that maybe they're unhappy with the current pace of appreciation.Rohit Gargdirector at Bank...
    VIDEO2:1302:13Chinese government bonds are an attractive proposition: JPMorgan Private BankSquawk Box Asia SINGAPORE — The Chinese yuan strengthened sharply against the U.S. dollar this week, following gains seen in recent months as the country's economy recovers and the greenback weakens. The offshore yuan has jumped more than 1% since last Friday, from levels above 6.83 to as much as 6.74 on Friday. The currency hit its strongest level against the dollar since May 2019. The onshore yuan also gained more than 1% over the same period. Overall, both the onshore and the offshore yuan have spiked more than 5% against the greenback since May. Analysts say recent strength in the yuan is due to a weakening dollar, which has slumped significantly this year, as well as China's economic recovery after the worst of the coronavirus hit. In fact, there's more room for the currency to gain against the greenback, they say. "As the dollar has entered this dollar depreciation, this weaker dollar environment, the (yuan) has somewhat lagged," said JPMorgan Private Bank's Alex Wolf. "When we're looking at the (yuan), we actually haven't seen...
    A Chinese clerk counts renminbi yuan banknotes at a bank in China on December 2015.Jie Zhao | Corbis News | Getty Images SINGAPORE — Goldman Sachs expects the onshore Chinese yuan to strengthen to 6.5 per dollar over the next 12 months, according to Timothy Moe, co-head of Asia macro research and chief Asia-Pacific equity strategist at Goldman Sachs. "We've recently firmed up … in particular, our Chinese renminbi forecast from 6.7 to 6.5 on a 12 month view," Moe told CNBC's "Squawk Box Asia" on Thursday, adding that it was one of the firm's "strongest views" for Asian currencies. In comparison, the onshore Chinese yuan changed hands at 6.7767 per dollar in the afternoon of Asian trading hours on Thursday. Its offshore counterpart traded at 6.7764 per dollar. That comes as the dollar is in a "structural period of weakening" after being quite strong over the last few years, Moe said. He added that the driver behind this phenomenon was "the loss of U.S. exceptionalism" as factors that previously propped the dollar up, such as relatively better economic growth...
    A Chinese bank employee counts 100-yuan notes and U.S. dollar bills at a bank counter in Nantong in China's eastern Jiangsu province on August 6, 2019.STR | AFP | Getty Images Increased foreign investment into Chinese markets could boost the usage of the yuan, pushing it to become the third largest reserve currency in the world — behind only the U.S. dollar and the euro, Morgan Stanley analysts predicted in a report distributed Friday.  The forecast comes as the Chinese government has been trying for years to promote the international use of the yuan, also known as the renminbi (RMB).  Right now, the yuan accounts for about 2% of global foreign exchange reserve assets, the report pointed out. But it could rise to between 5% and 10% by 2030, surpassing the levels of the Japanese yen and British pound, the analysts said. The forecast reiterates one that the bank made in February 2019. In the 18 months since, the Chinese government has stepped up its efforts to allow more foreign financial institutions into the domestic market. Overseas investors have also been...
    A bank employee counts U.S. currency and Chinese currency notes at a bank on August 6, 2019 in China.Xu Jinbai | Visual China Group | Getty Images The yuan isn't going to unseat the U.S. dollar anytime soon — but the Chinese currency's rising prominence has been seen in global reserves as well as international trade. Much has been said about the U.S. dollar losing its dominance as the world's reserve currency, as it weakened sharply in recent weeks.  Still, analysts rejected the idea, saying there are no viable alternatives to the greenback at the moment. Its two closest competitors — the euro and the Chinese yuan — have their shortcomings, they said. However, the Chinese yuan is set to gain more prominence, and indeed its global usage has gradually gone up owing to the country's growing economic influence, analysts pointed out. Factors such as the increasingly heated tech war between the U.S. and China, as well as Beijing's growing influence by way of its Belt and Road initiative, are also crucial in the yuan's reach for dominance, said Sven Schubert, senior investment strategist...
    VIDEO2:5802:58Chinese yuan to hit 6.70 per U.S. dollar in 12-month forecast: Goldman SachsSquawk Box Asia The Chinese yuan is set to see a sizable appreciation against the greenback in the next 12 months, according to Zach Pandl, co-head of global foreign exchange, rates and emerging market strategy at Goldman Sachs. Pandl forecasts the Chinese currency could hit 6.70 per dollar in the next 12 months, "primarily through the health of the Chinese economy." That compares against current levels of 6.9973 per dollar for the onshore yuan, as of Wednesday morning Singapore time. Meanwhile, its offshore counterpart changed hands at 6.9971 against the greenback. "I think the domestic picture in China actually looks pretty solid," the strategist told CNBC's "Squawk Box Asia." He said the country is seeing a "pretty good rebound" from the shock of the coronavirus pandemic. The earliest reported cases of the virus were found in China. Authorities in the country swiftly put in place lockdown measures to curb the disease's spread, denting the economy in the process. Data releases out of the country have been watched by...
    VIDEO2:1702:17Citi sees 'downside room' for the dollar-yuanStreet Signs Asia Don't expect the Chinese yuan to become a "safe-haven" alternative to the dollar or U.S. Treasurys anytime soon, says Ebrahim Rahbari, global head of foreign exchange analysis at Citi. "I'm very skeptical," Rahbari told CNBC's "Street Signs Asia" on Thursday, when asked if the Chinese currency could develop a safe-haven status of its own. Rahbari explained so-called safe-haven assets typically have certain attributes. Firstly, the analyst said, they tend to offer a long-term store of value function. In the shorter-term, he added, they also provide "refuge" during "periods of crisis." "Clearly, the yuan doesn't qualify," Rahbari said. "You can't get in and out, both in terms of how easy it is to access … the local financial markets but also because the liquidity simply isn't there in a lot of the … assets still," he said. As a result, even if the outlook for the Chinese economy and its financial markets is "broadly more benign," the yuan has a "very, very long way ahead" before it can become a real alternative...
    China must brace for a full-blown escalation of the struggle with the United States and prepare to gradually decouple the Chinese yuan from the US dollar, a former senior Chinese diplomat warned amid the continued downward spiral in relations between the world’s two largest economies. Zhou Li, a former deputy director of the Communist Party’s International Liaison Department ” which manages relations with foreign political parties, organisations and elites ” is the latest in a series of voices in China calling for the country to be ready for a currency split with the US amid growing signs of financial war in recent weeks. “By taking advantage of the dollar’s global monopoly position in the financial sector, the US will pose an increasingly severe threat to China’s further development,” Zhou wrote in the full version of an article published on Saturday by the Beijing-based think tank Chongyang Institute for Financial Studies at Renmin University. China renews push of yuan in belt and road nations, but challenges remain China should now make preparations to insulate itself from “dollar hegemony and gradually achieve...
    Hong Kong (CNN Business)The world's most valuable liquor company has just claimed another first. Kweichow Moutai, the Chinese company known for making the popular national spirit, baijiu, is now the biggest public company in mainland China by market cap after its shares gained 23% so far this year, according to data from Refinitiv.It's currently valued at more than 1.8 trillion yuan ($259 billion), surpassing one of the country's top banks, the Industrial and Commercial Bank of China (IDCBF), which is worth just under 1.8 trillion yuan ($253 billion). For comparison, Chinese tech giants Tencent (TCEHY) and Alibaba (BABA) are worth about $605 billion and $614 billion respectively. The former is listed in Hong Kong, while the latter trades in New York and Hong Kong.Kweichow Moutai has long been one of China's hottest stocks. Read MoreIn 2017, it became the world's biggest liquor maker by market value, surpassing Diageo (DEO), the British firm that owns Johnnie Walker and other big brands. Diageo's current market value is about £65 billion ($81 billion). AB InBev (BUD), the world's largest brewer, is worth about...
    Alena Vikhareva | iStock | Getty Images The currency markets are currently facing "multiple cross-currents" amid fears over a potential second wave of coronavirus cases in the world, said Deutsche Bank's Sameer Goel, who is chief Asia macro strategist. A "big question" for investors right now over the U.S. dollar is whether it should be trading at a safe-haven risk premium as concerns rise over a potential second wave of virus infections, Goel told CNBC's "Street Signs" on Monday. He said that in a potential resurgence of cases, the U.S. dollar could weaken against most of its peers in developed markets, and to an extent, possibly China too. His comments came after the U.S. reported a spike in the number of cases over the weekend. More than 30,000 new cases were reported on Friday and Saturday — the highest daily totals since May 1, according to data compiled by Johns Hopkins University. Meanwhile, the recent detection of a cluster of infections in the Chinese capital of Beijing also stoked concerns of a potential resurgence of the virus in the country, where Covid-19 was...
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