www射-国产免费一级-欧美福利-亚洲成人福利-成人一区在线观看-亚州成人

US EUROPE AFRICA ASIA 中文
Business / View

BlackRock sees yuan depreciation as wakeup call for China debt hedging

(Agencies) Updated: 2015-09-15 10:28

The yuan's depreciation is a wakeup call for Chinese companies that rarely hedge overseas debts, according to BlackRock Inc and Aviva Investors Global Services Ltd.

China's second-biggest steelmaker Baosteel Group Corp, its largest auto rental company Car Inc and developer Country Garden Holdings Co said they are considering hedging after the Aug 11 depreciation. Rising demand pushed up the cost of such trades, with the extra interest payments to lenders of yuan in five-year cross-currency swaps jumping 0.53 percentage points in two weeks to 3.18 percent.

"Until recently lots of Chinese companies had regarded the dollar-yuan exchange rate as a one-way bet, therefore there was little need to hedge," said Tim Jagger, a Singapore-based portfolio manager at Aviva. "Clearly that relationship has changed and companies now need to do more hedging. But hedging costs have also gone up, so I expect only more conservative management will do that."

Companies already face more than $17 billion in extra costs on overseas liabilities after the yuan slid 3.3 percent the past month, according to calculations based on Bloomberg data. JPMorgan Chase & Co forecasts further declines of up to 5 percent in the currency in the next 12 months.

"We will focus more on foreign-exchange rate risk management and will make more use of foreign exchange management tools including spot, forwards and financial derivatives to hedge," said Chen Ying, vice-president in charge of corporate finance at Baosteel. "We will also adjust settlement currencies for imports and exports to reduce foreign-exchange risks."

Car Inc is also seeking short-term hedging for interest payment of offshore debt, mostly through forwards, according to its chief financial officer Wilson Li.

Country Garden's investor relations manager Ma Ziling also said the company will closely monitor its forex status in the future.

Costs for forwards or swaps can be as high as 3 percent, according to Gregory Suen, investment director, fixed income at HSBC Global Asset Management Hong Kong Ltd.

Twelve-month non-deliverable yuan forwards traded at a 4.7 percent discount to the spot rate on Aug 24, the most since December 2008. One-year implied volatility, a measure of expected moves in the exchange rate used to price options, jumped 470 basis points since the devaluation to 7.655 percent.

"The recent yuan volatility will be a call for Chinese companies with significant foreign debt or imports to start focusing more on hedging," said Suanjin Tan, portfolio manager for China bonds at BlackRock in Singapore. "Any competent business manager would want to hedge if there is significant mismatch between revenue, cost and liabilities."

The currency mismatch is the most evident among Chinese developers following restrictive onshore borrowing rules. Their forex assets cover less than 25 percent of foreign liabilities, according to Bloomberg Intelligence.

Previous Page 1 2 Next Page

Hot Topics

Editor's Picks
...
主站蜘蛛池模板: 国产成人a一在线观看 | 亚洲免费一区 | 成人自拍小视频 | 国产成人精品久久 | 国产v精品成人免费视频400条 | 99视频在线观看视频一区 | 精品亚洲永久免费精品 | 亚洲精品第一国产综合野 | 欧美日韩一区二区三区视频在线观看 | 亚洲国产免费 | 欧美成人午夜影院 | 久久精品道一区二区三区 | 日韩色视频一区二区三区亚洲 | 91久久精品一区二区三区 | 国产精品99久久久 | 三级黄色毛片网站 | 亚洲综合久久久久久中文字幕 | 国产午夜亚洲精品一区网站 | 亚洲美女自拍视频 | 精品国产欧美精品v | 一区二区三区日本视频 | 国内精品免费一区二区观看 | 日韩一级a毛片欧美一级 | 日本www高清免费视频观看 | 成人做爰网站免费看 | 69成人做爰视频在线观看 | 99国产精品高清一区二区二区 | 国产高清免费观看 | 日本高清va不卡视频在线观看 | 免费一级特黄a | 亚洲日韩中文字幕天堂不卡 | 波多野结衣在线观看一区二区 | 香港一级纯黄大片 | 伊大人香蕉久久网欧美 | 中文字幕一区视频一线 | 亚洲在线免费观看视频 | 成年女人免费视频播放成年m | 久草免费网站 | 成人性生免费视频 | 国产盗摄一区二区 | 91热国产 |