[Epoch Times, July 31, 2021](Epoch Times reporter Liu Yi comprehensive report) The CCP’s recent crackdown on mainland private enterprises has made investors uneasy. A recent survey by Reuters revealed that investors were short on the renminbi for the first time since April.
Reuters reported on July 30 that a previous Reuters survey showed that investors have reduced their long bets on the renminbi since June, but this week turned to be firmly bearish on the renminbi, as the Chinese authorities have strengthened their investment in education, technology, and real estate. The review caused uncertainty about future investment in the country.
The survey received 13 responses, all received before the Fed meeting. Fed Chairman Jerome Powell hinted on Wednesday that the Fed is not in a hurry to curtail stimulus measures because the economy is “a certain distance” from real progress in employment. .
The CCP authorities have recently stepped up efforts to crack down on off-campus education and training institutions, causing the stocks of New Oriental and other training institutions in the United States and Hong Kong to plummet, and at the same time driving the decline in the stocks of technology companies such as Tencent. “Rectification” caused heavy losses for investors.
US Securities and Exchange Commission Chairman Gary Gensler (Gary Gensler) said in a July 30 statement that Chinese companies must provide additional risk disclosure information for initial public offerings. He also asked the SEC to “conduct additional targeted reviews of company documents that are engaged in a large amount of Chinese business.”
Gensler’s statement said that in view of Beijing’s repressive behavior, he has asked SEC employees to disclose additional information before the processing of Chinese company registration takes effect. This information should include: investors are facing “uncertainty in the future actions of the Chinese (CCP) government, which may seriously affect the financial performance of the operating company” and the enforceability of certain contractual arrangements.
Chinese companies must also disclose whether their application for permission to list in the United States has been rejected by the Chinese authorities and the risk that such approval may be rejected or revoked.
This week, the renminbi has fallen below the 6.50 yuan mark against the US dollar, the mainland stock index has fallen by more than 4%, and China’s 10-year treasury bond futures have fallen by 0.4%.
The Reuters survey focused on the current position of nine currencies in emerging markets in Asia. They are the renminbi, Korean won, Singapore dollar, Indonesian rupiah, Taiwan dollar, Indian rupee, Philippine peso, Malaysian ringgit and Thai baht.
The survey uses estimates of net long or net short positions, ranging from minus 3 to plus 3. A positive 3 indicates that the market is aggressively longing the US dollar.
Editor in charge: Lin Congwen#
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