Hints and tips:
...“Further monetary policy divergence between China and the US with no material positive impact on Chinese growth would be a perfect recipe for a weaker CNY.”...
...We see the USD/CNY cross at 7.30, 7.20, 7.00 in 3-, 6- and 12-months, respectively....
...The move to a weaker CNY might also hold clues to the Chinese approach on growth and the Zero-COVID policy....
...The iShares China CNY Bond UCITS ETF is down around 9 per cent this year. Investor flight from China risk has also helped trim the fund’s size by almost two-thirds over the same period....
...The People’s Bank of China says the currency — also known as e-CNY — will coexist with cash. Dozens of other countries are considering central bank digital currencies....
...“The move likely signals the PBoC’s discomfort with the recent rapid depreciation of the CNY amid continued strengthening of the USD,” they wrote....
...Chris Hughes’ column (“Fed CBDC is no answer to China’s financial might”, Opinion, May 12), he argues that the US should not issue a digital dollar (or central bank digital currency) to match China’s e-CNY...
...Those are the push factors, but the potential pull of switching the peg to the yuan isn’t big enough yet, says Barclays: The CNY cannot be freely convertible and exchanged in large amounts, and the CNH...
...China’s pursuit of a digital currency — a digital renminbi, or e-CNY — is just one example of Beijing’s aims....
...From its first trial launch in April 2020 until the end of 2021, total e-CNY transactions in China were Rmb87.5bn ($13.5bn)....
...In the long run, the e-CNY might also become a significant reserve currency....
...Investors also exited what was a popular fund in 2021 — the iShares China CNY Bond Ucits ETF (CNYB)....
...The Bahamas has the Sand Dollar, Nigeria launched the eNaira last October and China is close to launching the digital renminbi, or e-CNY, after trialling it at February’s winter Olympics....
...China is vigorously testing its e-CNY in several regions....
...Local governments looking to spur spending as the economy recovers from the coronavirus pandemic have been quick to issue e-CNY stimulus bills — some e-CNY even has a built-in digital timer so users can’...
...The investment manager’s iShares China CNY Bond UCITS ETF was the best-selling China fund over the period, attracting net flows of €4.5bn....
...Sleep said the Chinese bond market had been a “home run” for iShares, whose China CNY Bond Ucits ETF (CNYB) took in $1.1bn in January, taking assets to $13.7bn....
...Some ETF providers have benefited from this trend with the $12.1bn iShares China CNY Bond Ucits ETF (CNYB) becoming the second-largest fixed income ETF in Europe just two years after its launch....
...Strong demand for Chinese equity ETFs has been mirrored by that for the country’s bond ETFs — the $12.1bn iShares China CNY Bond Ucits ETF (CNYB) has the second-largest fixed-income ETF in Europe just two...
...Meanwhile, BlackRock’s Ireland-domiciled iShares China CNY Bond ETF, which also tracks the same index and has a total expense ratio of 0.35 per cent, had outflows of $135m in October, following inflows of...
...(FT) Serving China’s sovereign digital currency ambitions, Tencent has made WeChat compatible with e-CNY payments ahead of the Winter Olympics....
...Legal & General Investment Management’s ESG China CNY Bond Ucits ETF (DRGN) holds a portfolio of debt issued by the Chinese government and three policy banks — Agricultural Development Bank of China, China...
...China is seven years into the process and has pilot programmes for the e-CNY, or digital yuan. The European Central Bank aims to introduce one by 2025....
...China has forged ahead with widespread trials of a digital renminbi and recently boasted that 140m individuals and 10m businesses have opened accounts to use the digital currency, known as e-CNY....
...Meanwhile, Morningstar noted in late July that the iShares China CNY Bond UCITS ETF (CNYB) had already become the second-largest bond ETF in the European market....
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