China Macroeconomics & Academia

Christopher Balding

Macroeconomics

There was some consternation last night as the CNH surged against the USD bringing the CNY-CNH spread to an unprecedented 800 or so.  What is interesting is that there seemed to be no news or move in underlying currencies that would cause such a move.We can find no clear reason that would drive a late day and post standard trading hour surge in the CNH.  Let us review the major reasons given as explanations.Some have argued this may be due to tightening capital controls out of China.  Possible…

There was some consternation last night as the CNH surged against the USD bringing the CNY-CNH spread to an unprecedented 800 or so.  What is interesting is that there seemed to be no news or move in underlying currencies that would cause such a move.We can find no clear reason that would drive a late day and post standard trading hour surge in the CNH.  Let us review the major reasons given as explanations.Some have argued this may be due to tightening capital controls out of China.  Possible…

Haitong Securities Co Ltd (A) (600837 CH)

Chongqing Rural Commercial Bank (3618 HK)

Shanghai Pudong Development Bank Co. (600000 CH)

China International Capital Corporation (3908 HK)

China Financial Services Holdings (2980 HK)

China Merchants Securities Co Ltd (A) (600999 CH)

China Pacific Insurance (Group) Co., (601601 CH)

Flying Financial Service Holdings (8030 HK)

China Huirong Financial Holdings (1290 HK)

Changjiang Securities Company (000783 CH)

China Merchants Securities Co Ltd (H) (6099 HK)

Shanghai Stock Exchange Composite Index (SHCOMP INDEX)

What Caused the CNH Surge?