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Carrefour sells 80 per cent of its Chinese retail operations to Suning for 4.8 billion yuan

Suning.com, a Chinese electronics retailer and e-commerce giant, has agreed to buy an 80 per cent stake in the Chinese operations of French supermarket retailer Carrefour SA for 4.8 billion yuan (US$699 million) in cash, reflecting how digital technologies continues to redraw the consumer landscape in the world’s second largest economy.Suning said in a filing to the Shenzhen Stock Exchange on Sunday evening that Carrefour will retain a 20 per cent share in the businesses and two out of seven… Source link

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Property 

Housing policy easing, falling yuan to attract young Hongkongers to ‘Greater Bay Area’ cities of Zhuhai, Zhongshan and Guangzhou

More young Hongkongers looking to get on to the property ladder are expected to seek homes in the “Greater Bay Area” cities of Zhuhai, Zhongshan and Guangzhou, as a result of policy easing and a depreciating yuan, property agents have said.The agents said they have witnessed a twofold year-on-year increase in home sales in these cities, while enquiries from Hong Kong buyers looking to buy apartments in 70-year-lease projects have also gone up.“We are seeing more inquires from young Hongkongers… Source link

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Exporters, utilities and miners to benefit with yuan likely to weaken beyond seven to US dollar for first time in decade

The yuan is widely expected to test the psychologically important rate of seven to a US dollar for the third time in three years, amid an escalating trade war between China and the United States, the world’s two biggest economies.But unlike 2016 and 2018, when Beijing intervened to support the Chinese currency, its central bank governor, Yi Gang, has indicated there are no “redlines” for the exchange rate this time.“Chinese growth is likely to be further derailed by the ongoing trade war … [it]… Source link

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Yuan likely to drop below rate of seven to US dollar within three months, state-owned lender Bocom International says

The yuan is likely to drop below the level of seven yuan to a US dollar within three months, and the stock markets in mainland China and Hong Kong are gradually pricing in this scenario, Chinese state-owned lender Bank of Communications International said on Wednesday.Hong Hao, the bank’s head of research, said: “The three-month tenure estimate is basically based on the positions we can see built by foreign-exchange traders for now. A weakened valuation of the yuan is decided by the recent… Source link

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China healthcare platform Waterdrop raises 1 billion yuan in funds from investors including Boyu Capital

Waterdrop, a Chinese online insurance platform backed by Tencent, has raised more than a billion yuan (US$145 million) in a funding round led by private equity firm Boyu Capital.Other backers of the series C round include CICC Capital, while earlier investors including Tencent and Gaorong Capital also took part, the Beijing-based start-up said in a release on Wednesday.Founded by former Meituan Dianping executive Shen Peng in 2016, Waterdrop started as a health care crowdfunding platform for… Source link

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Chinese middle class expects yuan to decline amid trade war, eyes offshore investment to secure wealth

Chinese households expect a weaker yuan amid a tit-for-tat US-China trade war and are increasingly looking at offshore investments to safeguard their wealth against a slowing economy and stuttering stock market at home, according to a survey released on Tuesday.The poll, conducted by market research firm Nielsen for Bank of Communications (Bocom) every two months, found that 26 per cent of 1,830 respondents planned to buy assets denominated in foreign currencies in the coming six months.The… Source link

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China 

China is letting value of yuan slide to offset trade war tariffs, US Treasury Secretary Mnuchin says

US Treasury Secretary Steven Mnuchin on Saturday accused China of allowing the value of its currency to slide in a bid to offset the impact of Washington’s trade tariffs on the cost of its goods to American consumers.“It’s not coincidental in my mind that the currency has moved from approximately 6.30 [yuan to the US dollar] to 6.90,” the official said on the sidelines of the G20 finance leaders’ meeting in Japan.“Traditionally to manipulate a currency, official intervention in the foreign… Source link

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Russia keen to sell yuan bonds to deepen ties with China and further reduce US dollar dependence

Russia is again exploring selling yuan bonds again to deepen its financial market connections with China and to boost trade in yuan and roubles to counter the dominance of the US dollar.It first considered selling a yuan bond back in 2016, and after reviving the idea last year, is again revisiting the possibility as China and Russia seek to further strengthen ties amid escalating tensions with the United States.Russia would first sell a sovereign bond in yuan and list it on the Moscow Exchange,… Source link

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Weaker yuan, oil price volatility will hit Chinese airlines’ profits, say analysts

A weaker yuan and volatile global oil prices are likely to dent Chinese airlines’ earnings, though the trade war is having a negligible impact, according to analysts.The carriers may suffer losses from the depreciating yuan because of their exposure to foreign-currency loans. The yuan has slipped about 3 per cent since mid-April.The biggest mainland Chinese airlines, including China Southern Airlines, Air China and China Eastern Airlines, have been among the worst performers on the stock market… Source link

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China 

China’s yuan dropping below 7 to the US dollar is no longer ‘forbidden zone’, analysts say

Yuan watchers arguing that China should not be scared of the currency breaking 7 to the US dollar are being emboldened by a former central bank official’s support for their thesis.In the four days since former People’s Bank of China (PBOC) governor Zhou Xiaochuan dismissed the importance of keeping the yuan above 7 to the US dollar, at least six analysts published reports laying out why the central bank is likely to tolerate a weaker yuan. They say policymakers are more likely to prioritise… Source link

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