Exclusive: China's state banks told to stock up for yuan intervention

[RealDude]

China's central bank has asked major state-owned banks to be prepared to sell dollars for the local unit in offshore markets as it steps up efforts to stem the yuan's descent, four sources with knowledge of the matter said.

The simultaneous selling of dollars and buying of yuan could put a floor under the Chinese currency, which has lost more than 11% to the dollar so far this year and looks set for its biggest annual loss since 1994, when China unified its official and market rates.

Sources said the intervention plan involved using state lenders' dollar reserves primarily. But the total amount of dollar selling is yet to be determined as the yuan's movements are largely dependent on dollar moves and the Fed's tightening trajectory, the source said.

China burnt through $1 trillion of its official FX reserves to prop up the currency after a one-off 2% devaluation in 2015 that roiled global financial markets.

https://www.reuters.com/markets/cur...tock-up-yuan-intervention-sources-2022-09-29/

 

[RealDude]

Chinese stocks, currency slide​

China’s yuan weakened sharply on Monday and the country’s stocks had their worst day since the 2008 global financial crisis, just a day after Chinese leader Xi Jinping secured his third term and made a major leadership reshuffle.

The renminbi hit a fresh 14-year low against the US dollar on the onshore market. The Hang Seng Tech Index, which tracks the 30 largest technology firms listed in Hong Kong, plunged almost 10%. Shares of tech giants Alibaba and Tencent both nosedived more than 11%, wiping a combined $54 billion off their stock market value.

The sharp selloff comes one day after the ruling Communist Party unveiled its new leadership for the next five years. A number of senior officials who have backed market reforms and opening up the economy were missing from the new top team. This sparked investor concerns about the future direction of the country and its relations with the US.

https://www.rt.com/business/565259-chinese-stocks-currency-slide/

 

[RealDude]

China's Xi says willing to work with United States for mutual benefit​

President Xi Jinping said China is willing to work with the United States to find ways to get along to the benefit of both, Chinese state television reported on Thursday, ahead of a possible meeting with U.S. President Joe Biden in Indonesia.

As major powers, China and the United States should strengthen communication and cooperation to help provide stability to the world, Xi said in a message to an event of the National Committee on U.S.-China Relations on Wednesday.

https://www.reuters.com/world/china...nefit-president-xi-quoted-by-cctv-2022-10-27/