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Chinese small-caps surge most in seven weeks on lending rate reform, Shenzhen revitalisation plan

Smaller companies in Shenzhen, considered China’s technology hub, have gained the most in seven weeks on optimism a new market-based method of pricing loans to be introduced by the country’s central bank will lower corporate funding costs, and after Beijing rolled out a plan for bolder reforms in the city.The ChiNext gauge of start-ups surged 3.5 per cent at the close on Monday, capping its biggest gains since July 1. The Shenzhen Composite Index, which tracks all the 2,000-plus stocks on the… Source link

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China’s yuan exchange rate drop could roil already strained Hong Kong-protest hit economy

Hong Kong’s economy, already straining under the weight of anti-government protests as well as the US-China trade war, is now set to feel the pressure of a weaker Chinese yuan.Retailers, restaurants, hotels and real property agents will be the first to feel the impact after the Chinese currency fell below the key level of 7 to the US dollar last week for the first time in 11 years. It is set to depreciate further, and with the Hong Kong dollar pegged to the US dollar, it makes visiting the city……

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Vietnam 

Food and beverage firm posts highest cash dividend payout rate – Economy – Vietnam News | Politics, Business, Economy, Society, Life, Sports

  Vinacafe Biên Hòa coffee products being packaged for sale. – Photo tinnhanhchungkhoan.vn HÀ NỘI — Coffee maker Vinacafe Biên Hòa maintains its top position on the Vietnamese stock market in terms of cash dividend payout rate. Vinacafe Biên Hòa (HoSE: VCF) plans to pay a 240 per cent dividend in cash for 2018, meaning every shareholder will receive VNĐ24,000 (US$1.03) for each share they own. In 2018, the company earned VNĐ3.43 trillion ($147.5 million) in revenue and VNĐ637 billion in post-tax profit, up 6 per cent and 72.5 per cent respectively from…

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China 

China pledges not to devalue yuan exchange rate after US currency manipulator designation

China will neither devalue the yuan nor change the way it manages the Chinese currency exchange rate after the United States designated it as a currency manipulator last week, according to China’s foreign exchange administration chief.The US Treasury officially designated China as a currency manipulator on Monday after Beijing allowed the yuan to weaken beyond the key threshold of 7 to the US dollar after having defended that level for more than a decade.But China will stick to its “managed… Source link

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China says ‘no such thing’ as currency manipulation despite US claim it depreciated yuan exchange rate

China’s central bank flatly rejected the charge from the United States that it is a currency manipulator, instead accusing Washington of adopting protectionist, unilateral actions which run counter to international rules and negatively affect the global economy.The US quickly labelled China after the yuan fell below the key threshold of 7 to the US dollar on Monday, a level the PBOC had previously defended. It was the first time it had fallen below the psychologically important level since 2008… Source link

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China 

China exchange rate drop could continue into 2020 as it tries to offset US tariff impact, analysts say

The decline of China’s yuan on Monday to its lowest level in 11 years against the US dollar could continue into 2020 amid the apparent shift in its policy stance by the Chinese authorities, who are showing increasing reluctance to provide concessions to resolve its trade war with the United States.The Chinese currency’s drop has also rattled the currency market, sending 11 regional currencies lower.The yuan slid 1.3 per cent to 7.0298 against the dollar on Monday in response to President Donald… Source link

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Vietnam 

Good short-term effects for Việt Nam after Fed’s rate cut – Economy – Vietnam News | Politics, Business, Economy, Society, Life, Sports

  Inside a BIDV office. Local commercial banks slashed lending rates by 0.5-1 per cent after the US Federal Reserve announced a rate cut on August 1. — Photo vietnamplus.vn HÀ NỘI — The US Federal Reserve’s latest rate cut will benefit commodity and equity markets in the short term, according to specialist Nguyễn Trí Hiếu. The US central bank on Thursday announced its first rate cut since 2008 by 25 basis points to the range of 2-2.25 per cent. The rate cut would increase the value of investment into equity…

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Trade war, rate cuts, huge deficits – Trump gets away with it thanks to the US’ ‘exorbitant privilege’

In 1965, the then finance minister of France Valéry Giscard d’Estaing fumed about the “exorbitant privilege” America enjoyed in the global economy because of the advantage conferred on the country and its companies by the dollar’s status as the world’s reserve currency.Fast forward nearly 45 years, and the US dollar still reigns supreme. What has changed, however, as financial markets have become globalised, is the propensity of large amounts of capital to flow to the US during periods of… Source link

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Vietnam 

US Fed cuts key interest rate to ‘insure’ against global uncertainties – Economy – Vietnam News | Politics, Business, Economy, Society, Life, Sports

  U.S. dollar banknotes in Washington DC, the United States. US Federal Reserve on Wednesday lowered interest rates for the first time since the 2008 global financial crisis, amid rising concerns over trade tensions, a slowing global economy and muted inflation pressures. — Xinhua/VNA Photo WASHINGTON — The US Federal Reserve, under intense pressure from President Donald Trump to stimulate the economy, yesterday cut the benchmark interest rate for the first time in more than a decade but struggled to justify the move or explain where it goes next. The move…

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Stocks Blog: Borrowers linked to HIBOR to get boost after HKMA cuts rate in line with US Fed

Welcome traders to a fresh month — The Hong Kong Monetary Authority cut its base lending rate by 25 basis points, following the US Federal Reserve’s cut overnight. That will helped borrowers whose loans are linked to the HIBOR — the Hong Kong Interbank Offered Rate — including companies and mortgage holders. Companies carrying large debts, such as airlines or mainland property developers — could gain by paying less in interest. And adding money into the system generally will help lift all… Source link

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