The stability of the yuan receives support from the distribution of Chinese enterprises

The Chinese businesses listed on the Hong Kong Stock Exchange intend to be early on the date for the exchange of cash profits for the shareholders until the second quarter, in a move that can reduce the volatility of the Yuan during the year. Distributions, which require the conversion of companies to profits from the Yuan to Hong Kong dollars, will increase to $ 36.1 billion during the period from April to June, about twice the average for the same period over the past nine years, according to data collected by Bloomberg. As a result, the third -quarter distributions are expected to fall more than half. “It is very likely that the early payout of the final distributions after the second quarter is intentional to give a space between the distributions to prevent the burden on the Yuan from being raised in the third quarter,” according to Wu Chawan, director of funds in Borui Funds Management Co in Beijing. He added that “the conversion of the currency in stages may be another way to reduce the downward pressure on the currency.” The Yuan is the focus of attention, the fate of the yuan is much attention this year, as the trade war launched by US President Donald Trump focuses on China. Last month, Trump announced 145% of customs on many Asian land products, and the Yuan has dropped 2% against the dollar over the past six months, with a performance less than all its 16 Asian counterparts, with the exception of two currencies. The revenue of most Chinese businesses listed in Hong Kong Balwan, but companies spend distributions for shareholders in the city currency, and this transfer usually puts pressure on the price of the yuan in external transactions. Improving the returns to change the exchange schedule can also be driven, although partly, with the efforts of the Chinese regulatory authorities to improve shareholders’ returns. A 9 -point manual published by the State Council last year included an initiative to distribute more profits to investors to investors, and set measures to increase middle -aged distributions. Banks are good examples of the transformation seen this year. The China Constus Education Corp is expected to spread final profits with a total of $ 6.8 billion in May, and it was always spent on these distributions during the third quarter. Among other things, during the first half of the year, businesses that intend to divide their final distributions into two groups are paid each of the “Bank of China Ltd” and “Bank of Communications” and “Postal Savings Bank of China” after it was usually spent in the third quarter. The expected decrease in distributions during the third quarter may come less than expected, because some companies have not yet announced the date of the distribution. For example, China Mobile and ‘Ping an Insurance’ weight profit during the second half of the year, but they have not announced it yet. The biggest contributions to the largest contributors to standard divisions during the second quarter “Tenentation Holdings”, which are expected to spend $ 5.33 billion, an increase of 33% at its level a year ago. JD.com will also distribute $ 1.46 billion to profits and ‘China Hongqiao Group’ for aluminum industry $ 1.24 billion, all of which are records. Commercial news has become the most important factor for investors across Asia to overwhelm any local developments. Despite last week’s signs on the possibility of progress to resolve the stagnation of the Chinese US position soon, negotiations can take several months. “There was a talk that the Chinese companies in Hong Kong aimed to strengthen their second quarter cash distributions amid anticipation to the possibility of increasing exchange rate fluctuations in the next phase,” according to Cook Hong Wong, the head of selling shares for settings at Maybank Securities in Singapore.