The Great Yuan Escape: Chinese visitors rush to buy word in Hong Kong…


HONG KONG Dec 1 Mainland Chinese visitors
bought HK$18.8 billion ($2.42 billion) of word in Hong Kong
in a third quarter, some-more than double a volume in a same
period final year, as a yuan banking skidded to 8-1/2-year
lows.

Buying word products is a renouned approach for mainlanders
to dress restrictions and get supports out of China as they worry
about serve debasement of a yuan and a negligence economy.

New word premiums from mainland visitors in a first
nine months of a year strike HK$48.9 billion, leading the
total for a whole of 2015, that stood during HK$31.6 billion.
Hong Kong supervision statistics showed on Thursday.

Mainland visitors’ new premiums accounted for 37 percent of
the sum new premiums for particular business, according to the
Office of a Commissioner of Insurance.

New premiums paid by mainland visitors rose 11 percent in
the third entertain from a prior entertain and were adult 1.6
times from a third entertain of 2015.

The yuan has mislaid 10 percent opposite a U.S. dollar since
Beijing suddenly devalued it on Aug. 11 final year.

Yuan offered strong in Nov as a dollar
strengthened, call Chinese state banks to meddle in
recent sessions to branch a currency’s slide.

A slew of investment banks have recently revised down their
forecasts of a yuan/dollar sell rates in a entrance year.

Worried by a risk of a swell in collateral outflows, Chinese
regulators have stepped adult a crackdown on authorised and illegal
channels that concede income to be changed abroad.

China’s biggest bank label provider UnionPay pronounced during a end
of Oct that mainland business were not authorised to use
UnionPay cards to buy any word products that include
investment-related essence in Hong Kong.

Market players contend a tightening magnitude might start to
impact new word premiums from mainland visitors in the
fourth quarter.

($1 = 7.7557 Hong Kong dollars)

(Reporting by Michelle Chen; Editing by Kim Coghill)

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