Cash & Liquidity Management

What are the latest challenges facing corporate cash investors in China?

Published: Jan 2017
J.P. Morgan Asset Management Thought for the Month – building stronger liquidity strategies – let's solve it.

January 2017

The Chinese Renminbi (CNY) is the worst performing Asian currency this year, down 5.67% vs. the USD. This marks the third year of declines with the red-back hitting an 8 year low. The pace of depreciation has actually increased in recent months with the currency lower by 1.94% in November this year as investors accelerate capital outflows to take advantage of better offshore opportunities whilst avoiding low onshore rates and further depreciation. In response, the government has introduced new capital controls and strengthened enforcement of existing ones. The combination of a weaker currency and new controls is creating significant challenges for Renminbi cash investors.

Read the J.P. Morgan Global Fixed Income blog contribution by Aidan Shevlin, Head of Asia Pacific Liquidity Fund Management at J.P. Morgan Asset Management as he outlines the recent weakening Renminbi trends and the subsequent impact to corporate cash investors in China.

You can also download other Liquidity Insights from our J.P. Morgan Global Liquidity website With its user-friendly navigation, you’ll find a seamless connection between liquidity investment solutions and our best thinking, which can help you meet your goals in today’s complex investing environment.

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