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Surge In Imports Dragged On GDP Says ING

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The Chinese yuan is facing depreciation pressure as most Chinese companies listed overseas will purchase foreign exchange to pay dividends generally in June and July, while the PBOC's latest move to hike FX reserve requirement ratio also indicates its intention of not allowing a rapid appreciation, the Shanghai Securities News reported citing analysts. Judging from the announced dividend plans, Chinese companies listed in the Hong Kong stock market may need to purchase as much as USD70 billion during June to August, the newspaper said citing Lu Zhengwei, chief economist of Industrial Bank. The yuan weakened for the second day yesterday, closing at 6.3872, with a total loss of 265 basis points over the last two days, the newspaper said.