• Markets
  • Crypto
  • Web3
  • Culture
  • Opinion
  • Politics
Subscribe
  • Login
  • Register
No Result
View All Result
  • Markets
  • Crypto
  • Web3
  • Culture
  • Opinion
  • Politics
No Result
View All Result
No Result
View All Result

China’s CNY Falls Beyond 7.3

25/10/2022 09:15
No comments
USD/CNY, Oct 2022

USD/CNY, Oct 2022

China’s yuan has fallen beyond 7.3 to the dollar, its lowest level since 2008, amid a capital flight that contributed to a stock market crash of 6% in Hong Kong’s Hang Seng index to its lowest level in 14 years.

The Shanghai stock index also fell below 3,000, while the Nasdaq Golden Dragon China Index, which tracks dozens of Chinese companies listed on American exchanges, crashed 14.4%, its lowest level since 2013.

“The sentiment of foreign capital is relatively pessimistic, and the scale of outflows has been relatively high recently,” Chinese state media says.

The return of Xi Jinping for a third term has raised concerns that a change of focus to the economy is not expected anytime soon.

No successor was appointed to the politburo, while the ranks were filled with Xi loyalists, increasing expectations that more state intervention in the market will follow.

Their economy grew 3.9% in the third quarter however, so claims the National Bureau of Statistics, but energy consumption is up only 2.9% this year.

While there has been growth, it’s probably not as much as official statistics say with retail sales up by just 0.7%, but manufacturing grew 8%.

The property sector instead has contracted by 8% in the first three quarters, with no indication of that easing.

Higher interest rates in US is also causing a liquidity crunch as wealthier Chinese investors take their money abroad.

That may reinforce this fall in CNY’s value, but bitcoin hasn’t seen any gains despite fairly strict capital controls in China.

A hostile government attitude towards crypto has chocked the industry there, yet CNY may fall further as China’s central bank might have to continue loosening its monetary policy.

Not least because commercial real estate sales have plunged some 25%, while the growth rate of sources of funds for real estate development is down 24.5%.

Those are deep recession numbers, yet somehow they’re not figuring on the GDP, even though the property sector is estimated to be a quarter of China’s economy.

Manufacturing backlogs due to the pandemic might have temporarily covered the effect, while the fall in yuan’s value might boost exports as goods become cheaper.

Considering the scale of their property crash however, concerns might increase regarding their banking sector as investors default.

Yet for now China is managing to continue growing at a significant rate considering the size of their economy, but they are seeing what might develop into a structural slowdown as political uncertainty puts the breaks on a years long debt fueled boom.

Related Posts

Bitcoin on a TV tower, fan art

Bitcoin Resilient at $23,000

The PBoC printer as of Jan 2023

Did China Print Half a Trillion?

World Holds Breath For Russian Surge

Can Ethereum’s Variable Tokenomics Address Inflation?

Load More
  • Trending
  • Comments
  • Latest
UK starts training Ukrainian troops on Challenger tanks.

World Holds Breath For Russian Surge

Backed Finance tokenizing stocks, Feb 2023

BlackRock ETF Tokenized on Uniswap

A Nationwide bank branch

Nationwide Restricts Payments to Binance

MicroStrategy HQ

MicroStrategy Increased Bitcoin Holdings

The PBoC printer as of Jan 2023

Did China Print Half a Trillion?

UK starts training Ukrainian troops on Challenger tanks.

World Holds Breath For Russian Surge

Crypto art

Can Ethereum’s Variable Tokenomics Address Inflation?

MicroStrategy HQ

MicroStrategy Increased Bitcoin Holdings

Comments

Latest News

  • Bitcoin Resilient at $23,000
  • Did China Print Half a Trillion?
  • World Holds Breath For Russian Surge

About Trustnodes

Terms of Service

Privacy Policy

Our Ethics and Values

Trustnodes Newsletter

(You have to be a paid subscriber)

Trustnodes © 2017-2023. All Rights Fully Reserved. For any Enquiries contact@trustnodes.com RSS Feed

No Result
View All Result
  • Login
  • Sign Up
  • Cart
  • Markets
  • Crypto
  • Web3
  • Culture
  • Opinion
  • Politics

Trustnodes © 2017-2023. All Rights Fully Reserved. For any Enquiries contact@trustnodes.com RSS Feed

Welcome Back!

Login to your account below

Authenticate with MetaMask Loading...

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

*By registering into our website, you agree to the Terms & Conditions and Privacy Policy.
All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?