No Happy New Year in China as currency, liquidity fears loom
Hong Kong
CHINA bulls could be facing a grim New Year's eve.
The first day of 2017 is when an annual US$50,000 quota to convert the yuan into foreign exchange resets, stoking concern that there will be a rush to sell the local currency. With tax payments and a regulatory assessment also tightening liquidity in the money market towards year-end, January may bring scant relief as lenders prepare for stronger cash demand before the Chinese New Year holidays, which are only a month away.
China's markets are seeing renewed pressure this month as the Federal Reserve projects a faster pace of rate increases for 2017 and its Chinese counterpart tightens monetary conditions to spur deleveraging and defend the exchange rate. The declines are capping off a tough year for investors during which bonds, shares and currenc…
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
International
China’s Jan-March foreign investment inflows down 26%
South Korea government offers first compromise to end doctors' strike
Japanese AI tool predicts when recruits will quit jobs
India votes in gigantic election dominated by jobs, Hindu pride and Modi
Britain’s retail sales disappoint in sign of lacklustre recovery
Explosions in Iran, US media reports Israeli strikes