China's big dividend payouts are weakening the yuan, challenging Beijing's market stability efforts.

China's efforts to boost its stock market through record dividend payouts by Hong Kong-listed companies are putting pressure on the yuan. Interim dividends are expected to reach $12.9 billion between January and March, a 47% increase year-over-year. The currency conversions needed for these payouts are causing outflows, weakening the yuan. This comes amid a resurgent US dollar and potential US-China tensions, testing Beijing's ability to maintain market stability.

3 months ago
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