Jan 27, 2016

    Soros warned not to bet against yuan, HK dollar


    CHINA'S state media has warned billionaire investor George Soros against betting on falls in the value of the Chinese yuan and Hong Kong dollar amid widespread worries over the health of the world's second-largest economy.

    China's fourth-quarter economic growth slowed to the weakest since the global financial crisis, increasing pressure on a government struggling to regain investors' confidence after perceived policy missteps jolted global markets.

    "Soros' challenge against the renminbi (yuan) and Hong Kong dollar is unlikely to succeed.

    "There is no doubt about that," the People's Daily overseas edition said in a front-page opinion piece yesterday.

    China's economic fundamentals remain sound despite slower growth, volatility in its stock market and the yuan's depreciation against the US dollar, said the opinion piece, written by a researcher at the Commerce Ministry.

    Soros told Bloomberg TV on Thursday that he sees a hard landing for China's economy contributing to global deflation.

    In his comments to Bloomberg, he said he had been betting against the S&P 500, commodity-producing countries and Asian currencies while buying US government bonds.

    He did not specifically mention the yuan and Hong Kong dollar.

    China's economic growth slowed to 6.8 per cent in the fourth quarter, bringing the full-year growth to 6.9 per cent in last year - the poorest showing in 25 years.