Reported about 1 year ago
Chinese domestic investors are moving cash to Hong Kong, resulting in a weaker yuan and increased yuan deposits in the financial hub. As mainland investors seek better yields and companies prepare for annual dividends, pressure on the currency mounts. Market sentiment towards China has soured, leading to outflows from mainland China to Hong Kong and a decline in the yuan exchange rate. Analysts note a variety of reasons for investor caution, including uncertainties surrounding Chinese economic policy and foreign fund sentiment shifting towards positivity on Chinese stocks.
Source: YAHOO