|Day's Range||7.841 - 7.841|
|52 Week Range||7.7825 - 7.8532|
Posted by OFX USD - United States Dollar China threatened retaliation if the U.S. Congress enacts legislation supporting Hong Kong protesters. The House passed measures favoring the pro-democracy movement, including one putting Hong Kong's special trading status under review. China warned the U.S. lawmakers to stop meddling in its internal affairs, "…before … Continue reading "The U.S dollar falls following weak retail sales, and China threatens to retaliate against the Hong Kong bill."The post The U.S dollar falls following weak retail sales, and China threatens to retaliate against the Hong Kong bill. appeared first on .
SHANGHAI/HONG KONG (Reuters) - State-owned financial conglomerate China Everbright Group aims to restructure its sprawling business and pursue a billion dollar IPO next year in Hong Kong, three people with direct knowledge of the matter told Reuters on Thursday. While the offering size has yet to be finalised, the initial public offering (IPO) will likely be at least in the billion-dollar bracket, two of the people said. The third person estimated that Everbright, backed by sovereign wealth fund subsidiary Central Huijin Investment Ltd and China's Ministry of Finance, could raise up to $3 billion.
(Bloomberg Opinion) -- The longer Hong Kong protests drag on, the less likely China will be to unleash the trillion-dollar stimulus markets seem to want. Beijing has become painfully aware that its easy-money policies of the past inflated asset bubbles and widened the wealth gap. Any repeat endeavors could risk stoking social unrest on the mainland. Over the past decade, China flooded its economy with big-ticket outlays. There was the 4 trillion yuan ($561 billion) package after the collapse of Lehman Brothers Holdings Inc., followed by interest-rate cuts in 2014 and 2015, and 3.5 trillion yuan of shantytown redevelopment projects from 2015 to 2018, to name a few. Lately, however, China has been conspicuously timid with its monetary tools, even as deflation hangs over the country’s producers and the trade-war standoff deepens. Sure, Beijing lowered banks’ required reserve ratio on Friday; but an outright cut to its benchmark lending rate is nowhere in sight. In fact, one could argue that the central bank bought itself some time to delay any weighty monetary-policy decisions, after last month’s tweak to the rate lenders offer their best clients. On the fiscal side, Beijing has found a new way to finance construction projects: Issuance of special-purpose municipal bonds has hit record highs this year. Yet infrastructure spending hasn’t picked up. That’s because the Ministry of Finance has been diligently auditing local governments, sometimes bi-weekly, to ensure money is spent in the right places.What explains this change of tune? China increasingly sees Hong Kong’s sky-high home prices as the root cause of city’s turmoil, which has continued for 14 consecutive weeks. Even the country’s liaison office in the former British colony cited minsheng, or people’s livelihood, as a valid concern.Beijing wants to prevent Hong Kong’s discontent from spreading to the mainland, aware that China is now a society of extreme income inequality, too, as measured by the Gini coefficient. Home prices in the first-tier cities of Beijing, Shanghai, Shenzhen and Guangzhou have more than doubled since 2013; as a result, young Chinese, just like their counterparts in Hong Kong, may find that climbing the middle-class ladder is getting harder. In that light, the hesitation of the People’s Bank of China to unleash an ambitious stimulus program makes sense. Whenever the central bank reopens its taps, a sizable chunk of hot money goes into real estate. The latest mini-easing proved no exception: Property investment shot up, while the manufacturing sector, hit hardest by China’s trade war with the U.S., remains anemic. President Xi Jinping’s mantra, “apartments are to be lived in, not speculated on,” hasn’t been heeded. Meanwhile, China is using its strict audit system to discourage local governments from relying too heavily on the property market, a problem that beset Hong Kong. Last year, the city collected a quarter of its fiscal revenue from land sales, compared with roughly a third for an average mainland municipality. To its credit, Beijing wants to prevent moral hazard: If a large chunk of government revenue comes from land sales, local officials are incentivized to keep the property bubble aloft, for instance, by nudging regional banks to dole out easy financing to developers. Shenzhen is now hailed as a model socialist city, in part because personal-income and corporate taxes account for almost all of its fiscal coffers. Commentators have lamented that China’s reserve ratio cuts and infrastructure spending are too little, too late. They’re missing the point. With the People’s Republic of China about to celebrate its 70th anniversary, social stability is foremost on Beijing’s mind – and that means eschewing the generous stimulus packages that tend to benefit the wealthy and sow the seeds of unrest.To contact the author of this story: Shuli Ren at firstname.lastname@example.orgTo contact the editor responsible for this story: Rachel Rosenthal at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Shuli Ren is a Bloomberg Opinion columnist covering Asian markets. She previously wrote on markets for Barron's, following a career as an investment banker, and is a CFA charterholder.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Fitch Ratings has downgraded Hong Kong’s credit rating as three-month months of angry protests have persisted, threatening “the stability and dynamism of its business environment,” the credit-rating agency said late Thursday.
Hong Kong’s tumbling equity market is stoking fears for the economy, as well as the stability of the capital markets.
Stablecoins issuer TrustToken has launched yet another product - this time pegged to the Hong Kong dollar (HKD), the firm announced Tuesday.The post TrustToken rolls out its first Asian offering with Hong Kong dollar-backed stablecoin appeared first on The Block.
The Hong Kong Monetary Authority (HKMA) stepped into the currency market again on Saturday in London and U.S. trading hours, buying HK$1.51 billion in Hong Kong dollars as the local currency repeatedly hit the lower end of its allowable trading band. The latest intervention will reduce the aggregate balance - the sum of balances on clearing accounts maintained by banks with the HKMA - to HK$74.8 billion on March 12, according to Reuters data. HKMA announced the intervention mid-Saturday.
Excess cash in Hong Kong's banking system has caused the local dollar to weaken so far in 2019, and traders expect the pegged currency will soon test the lower end of its tight band against the U.S. dollar. The Hong Kong dollar has fallen more than half a percent since early December, when it was trading close to the middle of its 7.75-7.85 band against the U.S. dollar. One-month inter-bank rates(HIBOR) have fallen 139 basis points since mid-December, mimicking a drop in U.S. yields as expectations rose for the Federal Reserve to slow its pace of monetary tightening.
Hong Kong-based money transfer platform Bitspark has launched what is reportedly the first stablecoin pegged to the Hong Kong dollar (HKD), local tech and finance news outlet Fintech Hong Kong reports Jan. 29. “Until now, US Dollar stablecoins have dominated the market but there are other national currencies in the world, like the Hong Kong Dollar,” the publication quotes CEO George Harrap as saying.