Asian Economist

Kok Peng Chan

Kok Peng has over three decades of experience covering the global economy and financial markets. He spent the bulk of his career in top global investment banks where he covered the Asian economies and stockmarkets. During this period, he travelled extensively to meet clients that cut across business lines. They include fund managers, hedge fund managers, private banking clients, corporates, and fixed income investors in the US, Europe, Japan, Singapore, Hong Kong and Australia. He is well liked by clients because of his commitment to a consistent framework and the ability to explain economic and financial developments with actionable investment recommendations. As a result he was ranked among top 3 economists in many surveys and polls conducted by financial magazines.

A Reality Check on the Yuan’s Prospects as a Global Currency

China's Growth Rebound Will Be Restrained

Macroeconomics

<ul>
<li>PBOC’s declining holdings of US Treasuries is often equated with the de-dollarisation of the Chinese economy.  Less known is that USD assets remain substantial and systemically embedded in Chinese banks</li>
<li>Chinese data shows their domestic banks are increasingly net long USD, with positions expanding alongside weaker domestic opportunities—especially from the property downturn—reinforcing demand for dollar assets</li>
<li>A forward-adjusted FX proxy shows RMB pressures remain driven by dollar flows, suggesting de-dollarisation narratives are overstated and China’s system still responds primarily to USD liquidity conditions</li>
</ul>


PBOC’s declining holdings of US Treasuries is often equated with the de-dollarisation of the Chinese economy.  Less known is that USD assets remain substantial and systemically embedded in Chinese banks
Chinese data shows their domestic banks are increasingly net long USD, with positions expanding alongside weaker domestic opportunities—especially from the property downturn—reinforcing demand for dollar assets
A forward-adjusted FX proxy shows RMB pressures remain driven by dollar flows, suggesting de-dollarisation narratives are overstated and China’s system still responds primarily to USD liquidity conditions


iShares 20+ Year Treasury Bond ETF (TLT US)

川から貯水池、そして湖へ：中国の脱ドル化物語