Yuan Bears Say Record Dollar Debt to Fuel Decline: China Credit
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Yuan bears have added Chinese companies’ record dollar borrowings to the list of reasons why the currency may weaken.
Chinese firms raised $203 billion from loans and bonds this year, 11 times more than the $17.7 billion of 2008, data compiled by Bloomberg show. Societe General SA, Daiwa Capital Markets and Royal Bank of Canada predict the yuan, which is headed for its first annual decline in five years, will drop further in coming months as the outlook for rising U.S. interest rates and a weakening Chinese economy expose the risk of overseas liabilities.