China is allowing some banks to offer higher interest rates on corporate US dollar deposits, according to people familiar with the matter, a move that may damp the yuan’s recent gains by encouraging companies to slow their currency conversion. A handful of Chinese banks, including some state-backed lenders, have been told by authorities they can collect onshore dollar deposits at rates above the U...
China is allowing some banks to offer higher interest rates on corporate US dollar deposits, according to people familiar with the matter, a move that may damp the yuan’s recent gains by encouraging companies to slow their currency conversion. A handful of Chinese banks, including some state-backed lenders, have been told by authorities they can collect onshore dollar deposits at rates above the US Secured Overnight Financing Rate said the people, who asked not to be identified discussing private matters. The SOFR is around 3.61%. The move signals a relaxation of an effective ceiling imposed in 2023, when the yuan was under pressure. At the time, regulators worried that higher dollar deposit rates would encourage companies to shift funds from the local currency into dollars to earn better returns, which would further weaken the yuan. At least three banks have received the guidance in recent days but have yet to take action, the people said. Representatives of China’s Interest Rate Self-Regulatory Mechanism, an industry body that coordinates market pricing under the guidance of the People’s Bank of China, did not respond to Bloomberg’s calls during office hours. While Chinese banks had previously used structured products to attract dollar deposits above the SOFR cap, according to the people, the latest guidance gives lenders more flexibility to compete for foreign-currency funds. It could also encourage companies to keep export proceeds and other cash holdings in dollars rather than converting them into yuan, helping to curb appreciation in the Chinese currency. The onshore yuan has gained more than 3% against the dollar this year to 6.77 on Friday, making it Asia’s best-performing currency, as improving sentiment toward Chinese assets boosted demand. Analysts have been forecasting further gains, with Goldman Sachs Group Inc. expecting the currency to strengthen to about 6.5 in the coming year.
Ideally, you'll manage to kick off retirement with a nice amount of money in an IRA or 401(k). But even if you're someone with a fairly large retirement account balance, it's still important to get as much out of Social Security as you can. Unfortunately, it's possible for your retirement savings to run out eventually. Social Security, on the other hand, is guaranteed to pay you a monthly benefit ...
Ideally, you'll manage to kick off retirement with a nice amount of money in an IRA or 401(k). But even if you're someone with a fairly large retirement account balance, it's still important to get as much out of Social Security as you can. Unfortunately, it's possible for your retirement savings to run out eventually. Social Security, on the other hand, is guaranteed to pay you a monthly benefit for as long as you live. So the larger your monthly checks are, the more financial breathing room you should get throughout your senior years. Image source: Getty Images. Continue reading
Jollibee Foods Corp. is considering switching a potential spinoff and listing of its international business from the US to Hong Kong, where share sales are flying, according to people familiar with the matter. The Philippines-based fast-food group, which has been expanding rapidly overseas to take on the likes of McDonald’s Corp. and Yum! Brands Inc. , is working with advisers and could aim to do ...
Jollibee Foods Corp. is considering switching a potential spinoff and listing of its international business from the US to Hong Kong, where share sales are flying, according to people familiar with the matter. The Philippines-based fast-food group, which has been expanding rapidly overseas to take on the likes of McDonald’s Corp. and Yum! Brands Inc. , is working with advisers and could aim to do the listing by the end of next year, the people said, asking not to be identified discussing private information. Considerations are preliminary and plans may change, they added. Jollibee’s shares in Manila have dropped about 25% this year to leave it with a market capitalization of about $2.5 billion. Known for its crispy fried chicken and sweet, Southeast Asian-style spaghetti, the chain already has a significant presence in Hong Kong with 24 outlets and is a particularly strong draw for the city’s Filipino community. It also operates dim sum restaurant chain Tim Ho Wan . Jollibee announced a plan to spin off its international operations and list in the US in January, saying at the time that the goal was to sharpen the focus of the two separate businesses. Representatives for Jollibee didn’t immediately respond to requests for comment. Almost $38 billion has been raised in primary and secondary share sales in Hong Kong already this year, compared with about $26 billion in the same period last year and less than $5 billion in the first half of 2024. While the bulk stems from Chinese companies, Hong Kong has been looking to diversify its offerings and drawing listings from Southeast Asian countries such as Vietnam . There are more than 270 Jollibee-branded stores outside of the Philippines, including in the US, Canada, Singapore, the Middle East, Italy, Spain and the UK, its website shows . The group’s brands also include Smashburger, the Coffee Bean & Tea Leaf, Highlands Coffee and Yonghe King, while it owns the Philippine franchise of Burger King and has a 50-50 local joi...