Latest news with #yuan
South China Morning Post
12 hours ago
- Business
- South China Morning Post
Hong Kong regains favour as companies and investors turn to China and yuan: Deutsche Bank
Hong Kong's corporate activity and yuan-driven business have been revitalised as global market participants strengthen ties to China's economy amid tariffs and geopolitical tensions, according to a senior executive at Deutsche Bank. Companies and investors have increased their exposure to China and hedged against the US dollar as they adjusted their supply chains and portfolios amid market volatility, said Ole Matthiessen, head of corporate banking for Asia-Pacific, Middle East and Africa, during a briefing in Hong Kong last week. 'We are seeing market participants across the corporate and institutional sectors thinking about hedging against risks' amid once-in-a-decade volatility in the foreign-exchange market, said Singapore-based Matthiessen, who is also the global head of cash management for the German lender. This volatility included significant US dollar depreciation against Asian currencies and fluctuating interest rates influenced by the economic outlook, tariffs and geopolitical tensions, he said. 'As part of that thinking, the discussion of the [yuan] as a world currency has resurfaced and grown stronger as a trend,' he said. Corporate and individual clients were keen to 'adopt a currency to keep their wealth for value preservation and risk-management reasons'. The trend was amplified as Chinese firms accelerated their global expansion plans, further leveraging Hong Kong's financial and investment resources, he added. Matthiessen said many corporate clients that previously retreated from Hong Kong in favour of Singapore were reconsidering their dual-hub structures. These companies – in industries such as logistics and consumer products that relied on procurement and supply chains in China – recognised 'Hong Kong's value as a connected global gateway and its direct links to mainland China', he said. 'It is a healthy trend that underscores the importance of Hong Kong in the global arena for export and import activities, particularly as mainland Chinese companies pursue their global ambitions.'
Time of India
3 days ago
- Automotive
- Time of India
Xiaomi reports record first-quarter revenue as it launches new electric SUV
China's Xiaomi on Tuesday reported record first-quarter revenue and profit, as the company said its ongoing shift towards higher-end products from smartphones to home appliances was already paying off. Revenue for the quarter ended March 31 was 111.3 billion yuan ($15.48 billion), up 47% year-on-year and beating the 107.6 billion yuan average of 17 analyst estimates compiled by LSEG. Adjusted net profit rose above 10 billion yuan for the first time, jumping 65% year-on-year to 10.7 billion yuan, ahead of the average estimate of 8.96 billion yuan, according to LSEG data. Xiaomi President Lu Weibing told a conference call with reporters that Xiaomi's strategy to focus on high-end products had yielded positive results. The world's third-largest smartphone maker, whose product lines also extend to cars, announced its latest electric SUV, the YU7, last week, which it will start selling in July. Lu said feedback on the YU7 indicated it could have a broader target market than its previous model, the SU7. The company did not disclose the price of the YU7 but suggested its better configurations should make the car 60,000-70,000 yuan more expensive than Tesla's best-selling Model Y, which is expected to be its strongest competitor and is priced from 263,500 yuan ($36,574). Xiaomi's EV business generated 18.1 billion yuan in revenue during the first quarter, delivering 75,869 SU7 sedans. It posted an adjusted net loss related to its EV and other new initiatives of 0.5 billion yuan. Its new EV orders have fallen since a fatal highway crash at the end of March involving an SU7 in driving-assistance mode, analysts have said. Its problems have been compounded by customer complaints of false advertising. Xiaomi apologised earlier this month for "not clear enough" marketing. Still, the company's shares have rebounded since April, giving it a market value of about $170 billion, higher than the roughly $161 billion commanded by BYD , China's biggest EV maker, LSEG data show. Xiaomi's first-quarter global smartphone shipments rose 3% from a year earlier to 41.8 million handsets, ranking it third globally, with a market share of 14.1%, according to its latest financial report citing data from researcher Canalys.
Business Insider
3 days ago
- Business
- Business Insider
Temu's owner saw a nearly 40% profit slump, thanks in part to Trump's tariffs
PDD Holdings, owner of budget e-commerce platform Temu, reported a steep profit decline in the latest quarter, partly due to President Donald Trump's tariffs. The Chinese company posted a 38% profit loss in the quarter that ended on March 31, compared to the year before. Its profits in the quarter totalled 16.09 billion yuan, or $2.22 billion. PDD Holdings' CEO, Lei Chen, said in a Tuesday earnings call that the profit decline was, first of all, due to intensifying competition in the e-commerce industry domestically in China. The company's Pinduoduo platform, the domestic equivalent of Temu, faces tough competition from players like Alibaba's Taobao and "And second, in our global business, radical change in external policy environment, such as tariffs, has created significant pressure for our merchants who often lack the capability to adapt quickly and effectively," Chen said. "Amid a rapidly changing external environment, our global business is working with merchants across the region to bring stable prices and abundant supply to consumers around the world," he said. While profits were down, PDD Holdings reported a 10% revenue increase compared to the year before, with $13.18 billion in sales. The earnings results follow a difficult quarter for Temu, which was directly affected by Trump's tariffs. On May 2, his administration closed the de minimis loophole, which allowed small parcels under $800 to enter the US for free, exposing Temu to tariffs and import fees. Trump has been imposing tariffs on China since February, starting at 10%. At its peak, the tariff rate on goods from China was 145%. As trade negotiations continue between the two countries, Trump has temporarily reduced it to 30%. Temu, a Gen Z-favorite app in the US, increased the prices of its products on April 25, citing "recent changes in global trade rules and tariffs." Chen added in the call, "No matter how policies shift, we'll continue to strengthen our operations in the markets we serve, helping more local merchants grow on our platform and enabling more orders to be fulfilled from local warehouses."
Indian Express
3 days ago
- Automotive
- Indian Express
Xiaomi reports record first-quarter revenue as it launches new electric SUV
China's Xiaomi on Tuesday reported record first-quarter revenue and profit, as the company said its ongoing shift towards higher-end products from smartphones to home appliances was already paying off. Revenue for the quarter ended March 31 was 111.3 billion yuan ($15.48 billion), up 47% year-on-year and beating the 107.6 billion yuan average of 17 analyst estimates compiled by LSEG. Adjusted net profit rose above 10 billion yuan for the first time, jumping 65% year-on-year to 10.7 billion yuan, ahead of the average estimate of 8.96 billion yuan, according to LSEG data. Xiaomi President Lu Weibing told a conference call with reporters that Xiaomi's strategy to focus on high-end products had yielded positive results. The world's third-largest smartphone maker, whose product lines also extend to cars, announced its latest electric SUV, the YU7, last week, which it will start selling in July. Lu said feedback on the YU7 indicated it could have a broader target market than its previous model, the SU7. The company did not disclose the price of the YU7 but suggested its better configurations should make the car 60,000-70,000 yuan more expensive than Tesla's best-selling Model Y, which is expected to be its strongest competitor and is priced from 263,500 yuan ($36,574). Xiaomi's EV business generated 18.1 billion yuan in revenue during the first quarter, delivering 75,869 SU7 sedans. It posted an adjusted net loss related to its EV and other new initiatives of 0.5 billion yuan. Its new EV orders have fallen since a fatal highway crash at the end of March involving an SU7 in driving-assistance mode, analysts have said. Its problems have been compounded by customer complaints of false advertising. Xiaomi apologised earlier this month for 'not clear enough' marketing. Still, the company's shares have rebounded since April, giving it a market value of about $170 billion, higher than the roughly $161 billion commanded by BYD, China's biggest EV maker, LSEG data show. Xiaomi's first-quarter global smartphone shipments rose 3% from a year earlier to 41.8 million handsets, ranking it third globally, with a market share of 14.1%, according to its latest financial report citing data from researcher Canalys. ($1 = 7.1920 Chinese yuan renminbi)
Mint
3 days ago
- Business
- Mint
China Seeks to Slow Yuan's Gains After Months of Propping It Up
The dollar's extended slide has prompted China's central bank to change tack in managing its currency, as it pivots from supporting the yuan to guarding against the risk of a rapid appreciation. The People's Bank of China fixed the yuan's daily reference rate at a slightly weaker level than market forecasts on Monday and Tuesday, after setting it stronger for most of the past six months. The PBOC is also on track to pause bill sales in Hong Kong for a third month, the longest run since 2018, leaving liquidity ample and easing upward pressure on the yuan. Adding to that, state-owned banks have been spotted buying dollars in the onshore market in recent weeks as they try to slow the Chinese currency's gains, according to traders. The PBOC's recent shift is the latest example of how the dollar's descent is rippling through global financial markets, as policymakers step back from propping up their currencies and anticipate more room to ease to shore up growth. In China's case, the authorities have to walk a fine line as a sharply weaker yuan may spur outflows, while a rapidly strengthening one could hurt exports. 'China's domestic condition is not ready to take on significant yuan appreciation,' said Ju Wang, head of Greater China FX & rates strategy at BNP Paribas SA. 'We still believe the yuan will lag the basket despite the weak USD trend and de-dollarization theme.' Beijing's tariff truce with Washington has bolstered China's currency, helping it advance more than 2% versus the greenback from an 18-year low set in April. The rally has given the PBOC room to pare back its defense of the yuan. The offshore yuan slipped 0.1% to 7.1980 per dollar on Wednesday to head for a third day of declines. This came after the PBOC set the yuan fixing at 7.1894, a slightly weaker rate for a second session. The PBOC has refrained from issuing bills in Hong Kong, and Bloomberg's calculation show that maturities in the three months through May unleashed 85 billion yuan of funds into the market. That helped to keep one-month funding costs on the yuan at around 1.7%, compared with as much as 4.5% in January when the PBOC offered extra bills to squeeze yuan short sellers. The latest economic data reinforce the need for authorities to ensure that the yuan doesn't strengthen too quickly. China's exports have held up well, but persistent price deflation and weak consumption highlight the need for continued policy support. Analysts say Chinese officials are unlikely to sit on the sidelines if the yuan starts to make rapid gains, akin to the recent moves seen in the Taiwan dollar and South Korean won. 'Alongside the resurfacing USD selloff, the PBOC is likely to tread cautiously to avoid excessive yuan appreciation, which could weigh on China exports amid the tariffs rout,' said Ken Cheung, chief Asian FX strategist at Mizuho Bank. This article was generated from an automated news agency feed without modifications to text.
