Another Sign of the Weak Yuan: Listed Company Financials

Bloomberg: China CFOs Are Swapping Dollars for the Yuan in Statements
While Capital Link International Holdings Ltd. says the growing international importance of the yuan means it no longer makes sense for the nation’s companies to report in a foreign currency, JPMorgan Chase & Co. says the weaker Chinese currency is triggering the move. The yuan will decline a further 1.3 percent to a six-year low by the end of the December, according to analysts’ median forecast in a Bloomberg survey.

"It’s flattering when the yuan is appreciating but it makes the numbers poor when the yuan is falling," said Adrian Mowat, the chief Asian and emerging-market equity strategist at JPMorgan. Companies “recognize after recent yuan weakness that it makes the numbers less favorable in Hong Kong dollars."
It makes sense for this to happen eventually and it makes for a clearer picture of Mainland business, but the impetus for the change is the weakening yuan. This is another aspect to the dedollarization process, another reason why the dollar system dies from deflation, not inflation.

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