News ID: 253308
Published: 1029 GMT May 25, 2019

China's top banking regulator says yuan bears will suffer 'heavy losses'

China's top banking regulator says yuan bears will suffer 'heavy losses'
THOMAS WHITE/REUTERS

China’s banking and insurance regulator on Saturday said it did not expect a persistent decline in the yuan and warned speculative short sellers they would suffer ‘heavy losses’ if they bet against the currency.

The yuan has lost more than 2.5 percent against the dollar since the festering China-US trade dispute intensified earlier this month, Reuters reported.

It is now less than a tenth of a yuan away from the seven-per-dollar level authorities have in the past indicated as a floor.

“Short-term fluctuation of the yuan exchange rate is normal, but in the long-run, China’s economic fundamentals determine that the yuan will not depreciate persistently,” Xiao Yuanqi, the spokesman for the China Banking and Insurance Regulatory Commission (CBIRC), told a finance forum in Beijing.

“Those who speculate and short the yuan will for sure suffer heavy loss.”

Xiao was reading from a script prepared for Guo Shuqing, CBIRC’s chairman and the Communist Party chief of the People’s Bank of China (PBoC). Guo was scheduled to give a speech at the same forum but couldn’t make it due to last minute arrangements.

Xiao also said Beijing must look out for hot money moving in and out of the country, as well as large amounts of capital flowing into the frothy real estate market.

“We must be especially vigilant about money from overseas moving in and out in large quantities, and hot speculative money, and we must resolutely fight bubbles in real estate and financial assets,” he said.

Chinese policymakers have struggled to manage bubble risks in the property market, the world’s largest, without hurting growth in the sector, which is crucial for the wider economy.

 

 

 

 

   
KeyWords
 
Resource: Reuters
Comments
Comment
Name:
Email:
Comment:
Security Key:
Captcha refresh
Page Generated in 0/1910 sec