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China sees brighter outlook for yuan and foreign investment as US-China trade war deal nears

The odds of capital exodus from China and of a slide in the value of the yuan exchange rate have diminished thanks to China’s steady domestic growth, progress in trade talks with the United States and the decision by the US Federal Reserve to halt its interest rate increases, China’s foreign exchange regulator said on Thursday.The US Federal Reserve’s announcement that it no longer plans to raise interest rates this year will mean that the difference between US and Chinese interest rates will… Source link

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Opinion | What El Niño, pork supply and steel production have in common – they all point to China needing a stronger yuan

A pig on a farm in Changtu county, Liaoning province, on January 17. China is the world’s largest consumer of pork, and thanks to the mass culling of pigs to stop the spread of African swine fever, domestic production is expected to fall at least 4 million tonnes below demand. Photo: Reuters Source link

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China shouldn’t count on currency stability to last. Rather, it should take steps to make the yuan a safe haven

It’s a popular misconception in currency markets that the trend is your friend – investors should know nothing is ever taken for granted. Beijing will be very relieved about the yuan’s relative stability over the past few months, but it is not the end of the matter. With so much uncertainty in global markets right now, the worry is that it marks the calm before the storm, with a return to last year’s yuan lows near 7.0 against the US dollar not an unreasonable bet. Beijing still has its work……

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Wary of a strong yuan, China has reason to rue yen and euro weakness

The renminbi might be in for a further period of broad strength but that will be driven as much by the unattractiveness of other currencies as by any inherent allure. Other currencies – though perhaps not the US dollar – just don’t look that appealing.Given Washington’s preoccupation with the US dollar/yuan exchange rate, realpolitik may dictate that a settlement of the US-China trade war will incorporate some subsequent renminbi appreciation versus the greenback. But if that was accompanied by… Source link

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The inclusion of China’s yuan bonds in global bond index is the start of a game-changing shift in global investment patterns

In 1980, sponsors of China’s Yizheng Chemical Fibers desperately needed capital to build a large-scale chemical fibre plant. State-owned financial institutions were unable to help. Having nowhere else to turn onshore, Yizheng issued a US$50 million bond overseas to raise funds, becoming the first Chinese enterprise in the modern era to tap the international bond market. Nearly 40 years on, Chinese issuers don’t have to venture overseas to attract foreign capital; investors are coming to China… Source link

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Singapore 

McDonald’s rolls out yuan yang-inspired coffee milk tea ice cream: brings back fish & fries, Singapore News

Can’t decide whether you like coffee or tea? Why not have both in the form of yuan yang? And if you love ice cream, you’d be pleased to know that McDonald’s will be launching yuan yang ice cream. But they’re calling it Coffee Milk Tea ice cream. They’ll have it five variations. Coffee Milk Tea Cone, $1Photo: McDonalds Singapore Coffee Milk Tea Twist Cone, $1Photo: McDonalds Singapore Coffee Milk Tea Chococone, $1.20Photo: McDonalds Singapore Coffee Milk Tea Soft Serve Sundae, $2Photo: McDonalds Singapore Coffee Milk Tea McFlurry, $3Photo: McDonalds Singapore…

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Xiaomi rebounds with 13.5 billion yuan annual profit, targets greater international expansion

Chinese smartphone giant Xiaomi Corp on Tuesday reported a net profit of 13.5 billion yuan (US$2 billion) last year, rebounding from its 43.9 billion yuan loss in 2017.The Beijing-based company’s total revenue grew 52.6 per cent to 174.9 billion yuan, up from 114.6 billion yuan a year ago, but slightly missed the 176 billion yuan market average estimate from analysts’ forecasts compiled by Bloomberg.That was driven by a 41.3 per cent increase in global smartphone sales to 113.8 billion yuan… Source link

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Why the yuan will rise, even though China faces a ‘tough economic battle’ in 2019

Lowering the goal for growth in China’s economy earlier this month, Premier Li Keqiang warned of a “tough economic battle ahead”. Only last week, figures showed that Chinese industrial output for the first two months of 2019 hit a 17-year low. It would be easy for investors to be downbeat on China and the yuan, but that might be a costly error. Admittedly, the timing of the Lunar New Year holiday is likely to have distorted the industrial output data, yet it is undeniable that China’s economy… Source link

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Alibaba to buy stake in parcel delivery firm STO Express for 4.6 billion yuan

Alibaba Group Holding plans to buy a stake in Chinese courier service firm STO Express, as the e-commerce juggernaut expands its networks.Alibaba will pay 4.66 billion yuan (US$693.3 million) for a 49 per cent stake in a new unit that will control 29.9 per cent of Shenzhen-listed STO, the courier service firm said in an exchange statement, without saying how much Alibaba will directly control the listed company. The stock jumped by the 10 per cent daily limit to 22.48 yuan after the open on… Source link

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China 

China has made a clear effort to keep yuan exchange rate stable, PBOC says

The Chinese government has made a clear effort over the last four years to maintain a stable exchange rate in the face of sustained downward pressure on the yuan, People’s Bank of China governor Yi Gang said on Sunday.“Since the beginning of 2015, the RMB has been facing depreciation pressure from various external and domestic factors,” Yi said during the National People’s Congress meetings in Beijing. “However, facing this depreciation pressure, the Chinese monetary authorities are still… Source link

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