5 Things to Know About the Chinese Devaluation

Понравилась презентация – покажи это...

Слайд 0

5 things about the Chinese Devaluation

Слайд 1

The devaluation Tuesday was the most significant downward adjustment to the yuan since 1994, when as part of a break from Communist state planning, Beijing let the currency fall by one- third.

Слайд 2

Goldman breaks down the geographic slowdown (Year on Year Data) US Exports Fell 1.3% down from the +12.0% Japan Exports Fell 13.0% in July, vs -6.0% Euro Exports Fell 12.3% vs -3.4% Hong Kong Exports 14.9% vs -0.5%

Слайд 3

#1 What did China do? In China’s domestic market, traders are allowed to push the yuan 2% stronger or weaker for the day. But the People’s Bank of China often ignores those market signals when it sets the next day’s rate.

Слайд 4

#2 Why did China do it? In its statement, the PBOC said it wants to bring the yuan more in line with the market. But the move also comes as China’s important export sector has weakened. A weaker currency helps China’s exporters sell their goods abroad.

Слайд 5

#3 What does this mean for the rest of the world? The most immediate effect is that it signals to the world that Beijing thinks the Chinese economy is sputtering. In the U.S., it will likely reignite criticism that Beijing keeps the currency artificially low to help its own manufacturers.

Слайд 6

#4 What does this mean for markets? The move puts pressure on other central banks around the world to push down their own currencies to help their own exporters and to prevent destabilizing capital flows.

Слайд 7

#5 What’s next? Longer-term, the move raises questions about Beijing’s pledge to liberalize its economy. But the move also appears to be designed to help exporters, at a time when China has been looking for other, more dependable sources of growth.

Слайд 8

Thank You! Don’t forget to follow Kotak Securities on SlideShare to get regular updates! Get eBooks Website DEMAT Account

Слайд 9

• Disclaimer: • Kotak Securities Limited. Registered Office: 27 BKC, C 27, G Block, Bandra Kurla Complex, Bandra (E), Mumbai 400051. CIN: U99999MH1994PLC134051, Telephone No.: +22 43360000, Fax No.: +22 67132430. Website: www.kotak.com. Correspondence Address: Infinity IT Park, Bldg. No 21, Opp. Film City Road, A K Vaidya Marg, Malad (East), Mumbai 400097. Telephone No: 42856825. SEBI Registration No: NSE INB/INF/INE 230808130, BSE INB 010808153/INF 011133230, MSEI INE 260808130/INB 260808135/INF 260808135, AMFI ARN 0164, PMS INP000000258 and Research Analyst INH000000586. NSDL: IN-DP-NSDL- 23-97. CDSL: IN-DP-CDSL-158-2001. Compliance Officer Details:Mr. Manoj Agarwal. Call: 022 - 4285 6825, or Email: ks.compliance@kotak.com . In case you require any clarification or have any concern, kindly write to us at below email ids: Level 1: For Trading related queries, contact our customer service at ‘service.securities@kotak.com’ and for demat account related queries contact us at ks.demat@kotak.com or call us on: Online Customers – 30305757 (by using your city STD code as a prefix) or Toll free numbers 18002099191 / 1800222299, Offline Customers – 18002099292 Level 2: If you do not receive a satisfactory response at Level 1 within 3 working days, you may write to us at ks.escalation@kotak.com or call us on 022 – 4285 8445 and if you feel you are still unheard, write to our customer service HOD at ks.servicehead@kotak.com or call us on 022-4285 8208 Level 3: If you still have not received a satisfactory response at Level 2 within 3 working days, you may contact our Compliance Officer (Name:Mr. Manoj Agarwal) at ks.compliance@kotak.com or call on 91(022) 4285 6825. Level 4: If you have not received a satisfactory response at Level 3 within 7 working days, you may also approach CEO (Mr. Kamlesh Rao) at ceo.ks@kotak.com or call on 91-(022) 6652 9160. This is an editorial content, our research should not be considered as an advertisement or advice, professional or otherwise. The investor is requested to take into consideration all the risk factors including their financial condition, suitability to risk return profile, and the like and take professional advice before • • • • • •

Слайд 10