Slow Motion Crash: De-dollarization Continues as States Ditch the USD & Trade in Local Currencies

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China Renaissance Crashes as Trading Resumes After Bao Fan Exit​

• Shares resume trading in Hong Kong after 17-month suspension
• Ex-chair Bao was replaced amid unspecified government probe

By Lulu Yilun Chen
September 9, 2024 at 9:43 AM GMT+8
Updated on
September 9, 2024 at 11:07 AM GMT+8
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China Renaissance Holdings Ltd.’s shares fell as much as 73% after resuming trading in Hong Kong on Monday, 17 months after the stock was suspended following the detention of its former Chairman Bao Fan.

The company said it has fulfilled requirements for the trading resumption, releasing its earnings for the first half and for last year and 2022.

The company replaced Bao in February, a year after he vanished from the public eye due to an investigation by Chinese authorities. Shares of China Renaissance were down 63% as of 11:00 a.m., wiping out about HK$2.6 billion ($334 million) of its market value.

 

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China’s Deflationary Spiral Is Now Entering Dangerous New Stage​

• Prices seen as falling through 2025 as wages, demand languish
• Long-term deflation could be major setback to China’s economy

“We are definitely in deflation and probably going through the second stage of deflation.”
Photographer: Qilai Shen/Bloomberg
By Bloomberg News
September 9, 2024 at 6:30 PM GMT+8
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Deflation stalking China since last year is now showing signs of spiraling, threatening to worsen the outlook for the world’s second-largest economy and raising calls for immediate policy action.

Data released Monday confirmed that apart from food costs, consumer price growth barely registered in large swathes of the economy at a time when incomes are sagging.

 

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A $6 Trillion FX Pile Is Asia’s Shield From Resurgent Dollar​

• Asian currencies slumped in October amid dollar strength
• India, Thailand, Philippines rank high in reserve adequacy

By Subhadip Sircar and Swati Pandey
1 November 2024 at 7:00 AM SGT
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A $6.4 trillion foreign-exchange reserve pile in Asia is giving investors confidence that central banks have the ammunition to fight the dollar’s strength stemming from the US presidential election.
Asian currencies have come under pressure in October, as rising odds of a Donald Trump presidency and uncertainties over the pace of the Federal Reserve’s easing bolstered the greenback. A Bloomberg index of the region’s currencies just had its worst month since February 2023, with the Indian rupee near its weakest ever and South Korea’s won close to a three-month low.

 

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Behind the numbers: Is Singapore really Vietnam’s top FDI source?​

Much of the capital flows from multinationals, increasingly from China, go through the city-state as a gateway

Jamille Tran ​

Published Fri, Nov 1, 2024 · 05:00 AM
Vietnam

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• Beyond favourable trade terms, Vietnam’s lower labour costs and more stable trade environment have made it an increasingly attractive investment destination compared to China. EPA-EFE
• Beyond favourable trade terms, Vietnam’s lower labour costs and more stable trade environment have made it an increasingly attractive investment destination compared to China. EPA-EFE
• Beyond favourable trade terms, Vietnam’s lower labour costs and more stable trade environment have made it an increasingly attractive investment destination compared to China. EPA-EFE
• Beyond favourable trade terms, Vietnam’s lower labour costs and more stable trade environment have made it an increasingly attractive investment destination compared to China. EPA-EFE
• Beyond favourable trade terms, Vietnam’s lower labour costs and more stable trade environment have made it an increasingly attractive investment destination compared to China. EPA-EFE

[HANOI] With global supply chains realigning and US-China tensions intensifying, Singapore has become Vietnam’s top investor, acting as a strategic conduit for capital from multinationals in China, Europe, and the United States through their regional headquarters in the city-state.
Singapore’s robust regulatory and financial frameworks have drawn unprecedented amounts of capital, especially from mainland China, as companies look to invest in South-east Asian countries to reduce dependence on Chinese markets and bypass trade tariffs.
According to Deloitte’s Doing Business in Vietnam 2024 report, Singapore led total foreign direct investment (FDI) inflows into Vietnam during the 2019-2023 period, averaging a 23 per cent share, followed by South Korea, Japan, Hong Kong, and mainland China.

 

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Malaysian ringgit set for biggest monthly decline since 2015​

Published Wed, Oct 30, 2024 · 04:00 PM
Ringgit

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• The ringgit is down more than 6 per cent against the US dollar in October, putting it on pace for its biggest monthly loss since August 2015. PHOTO: BLOOMBERG
• The ringgit is down more than 6 per cent against the US dollar in October, putting it on pace for its biggest monthly loss since August 2015. PHOTO: BLOOMBERG
• The ringgit is down more than 6 per cent against the US dollar in October, putting it on pace for its biggest monthly loss since August 2015. PHOTO: BLOOMBERG
• The ringgit is down more than 6 per cent against the US dollar in October, putting it on pace for its biggest monthly loss since August 2015. PHOTO: BLOOMBERG
• The ringgit is down more than 6 per cent against the US dollar in October, putting it on pace for its biggest monthly loss since August 2015. PHOTO: BLOOMBERG

MALAYSIA’S currency is on course for its worst month in more than nine years, as investors scale back on risk assets amid concerns over the US election.
The ringgit is down more than 6 per cent against the US dollar in October, putting it on pace for its biggest monthly loss since August 2015. The ringgit traded at 4.39 per dollar on Wednesday (Oct 30).
The renewed strength in the dollar is battering Asian currencies, almost all of which have come under heavy pressure in October as traders reassess the pace of Federal Reserve interest rate cuts and avoid risky assets in the run-up to the US election.

But the ringgit is partly a victim of its own success: a 14 per cent appreciation against the dollar in the last quarter, which made it Asia’s best performer, ensured there was room for a correction this month, according to OCBC.
“The previous gain was significant; therefore there’s more room for corrective play,” said Christopher Wong, a currency strategist at OCBC in Singapore. “The ringgit’s sensitivity to the yuan and the yen is also one of the highest in the region, which helps explain why it is suffering more than the rest.”
The Japanese yen is the only currency across Asia that has performed worse than the ringgit this month, losing around 6.3 per cent of its value against the dollar. China’s offshore yuan has depreciated around 2 per cent against the dollar.