In a scenario of a falling yuan can translate to profits from the Chinese government or even the investors in China.
Here's an example:
Chinese government and its investors make use of strong yuan to purchase strong currency assets in London or maybe Singapore. When yuan started falling, these assets translate into more yuan and thus become profits for the Chinese government and its investors.
A weaker yuan could also lead to a weaker rupiah as Indonesia needs to export coal to China. Singapore listed firm, XMH holdings could be affected due to reliance on the Indonesia coal exporting industry.
No comments:
Post a Comment