人民币

Lex Letter from Hong Kong: The renminbi rout

Dear readers,

Some in Hong Kong like to view China’s markets as becoming more stable and rational. That conveniently coincides with higher investor interest in the country’s assets — and steps to liberalise access to the bond and equity markets.

Inconveniently, the benchmark Shanghai Composite index on Tuesday entered a bear market, journalists’ favourite way of describing a 20 per cent decline from recent stock market peaks. The People’s Bank of China stepped in on Sunday, allowing banks to boost lending a day before the first round of tariffs takes effect in July.

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