That was the case in the aftermath of a shock currency devaluation in 2015 and during China’s trade war with the US under the Trump administration, when Beijing needed to tighten capital curbs and boost the yuan’s funding cost in Hong Kong. While authorities have also taken various steps to stem the currency’s weakness this time around, the outflow trend looks hard to reverse.
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The market has digested the continuing geo-political concerns and with the new US president taking an anti-war stance, there are high chances that various regional