China's Yuan to Get Hit With $20 Billion Dividend Onslaught
- Currency set to face a bout of volatility, analysts say
- Exchange rate slumped the most since November 2016 in May
Photographer: SeongJoon Cho/Bloomberg
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China’s currency has had a bumpier ride in the past several weeks than it’s seen since it stabilized against the dollar in 2017, and further turbulence may be in store as companies prepare to make a welter of dividend payments abroad.
Offshore-listed Chinese firms will hand out $19.6 billion of dividends in overseas currencies in the three months through August, according to data compiled by Bloomberg. While some of the payments will be made from existing foreign-exchange holdings, some conversions from yuan will be needed, contributing to volatility, market players say.