The Yuan Is Set to Weaken From Here, With or Without PBOC
- Dividend payouts from Hong Kong-listed Chinese firms will rise
- Upcoming southbound bond link may encourage fund outflows
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The yuan has had a fine run but the tide may be turning, even if the People’s Bank of China refrains from taking further steps to cool its rally.
The currency could find it harder to climb from here as seasonal dividend payments from Hong Kong-listed Chinese firms are set to swell. The yuan is also likely to come under pressure as the dollar gets a boost from growing debate among Federal Reserve officials about the timing for a reduction in stimulus.