Trapped China Cash Breathes Life Into Hong Kong’s Yuan BankingBy
Banks offer hedging to companies unable to repatriate yuan
Profits of foreign industrial firms at $253 billion last year
Banks in Hong Kong are finding a new source of revenue in helping multinational companies deal with a growing headache: how to cope with tightening restrictions on transferring profits and dividends out of China.
As Beijing clamped down on outflows that threatened to destabilize its currency, companies are suddenly turning to lenders in Hong Kong to hedge their currency risks, bolster the yield on money trapped inside China and for new loans, according to bankers and analysts…
Leave a Reply
You must be logged in to post a comment.