SOCAR plans to take a final investment decision by the end of 2026 on a petrochemical expansion in Türkiye valued at up to $7 billion, placing higher-value manufacturing at the centre of Azerbaijan’s effort to broaden its energy economy beyond crude oil and gas sales. The State Oil Company of the Republic of Azerbaijan is assessing new production units and upgrades to existing facilities at Petkim, its […]
Launched in H1 2026, Heavy Weight Express service saw a 16% increase in Weight per Day growth for the region (excluding China)
High-value, technology-related cargo, engineering & manufacturing, and automotive are the biggest drivers, making up two-thirds of the total weight of heavyweight segment
SINGAPORE – Media OutReach Newswire – 16 September 2026 – Following DHL Express’s introduction of Heavy Weight Express (HWX) this year, DHL Express recorded a 16% growth in its Time Definite International Weight per Day in Asia Pacific (excluding China) between January and July2026. This reflects how DHL’s Smart Industrial Growth Strategy is yielding positive outcomes as businesses are moving heavier, critical components, machinery, and industrial equipment across borders.
DHL Express heavy weight cargo
The heavyweight market has been gaining traction in recent years. Industry research shows that an estimated 10.2 million tons of heavyweight shipments¹ are being moved in Asia Pacific (excluding China) each year. Many companies have spent years reducing inventory and improving efficiency across their supply chains. However, companies today operate in a far less predictable environment marked by trade disruptions, manufacturing bottlenecks, and fluctuating demand. The rise in heavyweight shipment volumes mirrors a shift in how businesses are managing supply chain risks, as they increasingly turn to express logistics not only to handle sudden shifts in demand but also to have greater agility, certainty and control over timelines.
“Behind the numbers is a simple reality: Businesses are shipping heavy when timing matters and when it’s critical,” said Ken Lee, CEO for Asia Pacific, DHL Express. “As companies continue to navigate a complex landscape where uncertainty has become the norm, speed and reliability have also become part of the business decision. Customers are making deliberate decisions on what they ship through our network. Our Heavy Weight Express solution helps companies avoid downtime, protect working capital and keep operations moving when supply chains don’t go exactly as planned.”
Technology, Engineering & Manufacturing, and Automotive top Asia Pacific’s heavyweight contributors
Across the region, high-value, technology-related cargo, such as computer chips and semiconductors, accounts for the largest share of DHL Express’s heavyweight segment at over 34%, driven by rapid investment in data centers to support the growing demandfor computing capacity, data storage, cloud services, as well as artificial intelligence. This has fueled demand for technology-related shipments, from semiconductors and servers to cooling systems and electrical infrastructure. However, a data center crunch is creating supply chain bottlenecks as demand for semiconductor manufacturing outpaces infrastructure supply. As a result, express logistics services are urgently activated to move critical components quickly and efficiently, helping to keep projects on schedule.
The other main contributors to the heavyweight segment are businesses in engineering & manufacturing as well as the automotive industry.
Automotive is the fastest growing sector
HWX service is also gaining strong momentum in the automotive sector, with its shipment weight increasing at a rate of nearly 20%. As the leading export region for this sector, Asia Pacific is also seeing a surge in Asian automotive brands, particularly Electric Vehicle (EV) manufacturers from China and Southeast Asia. As these brands expand into new markets, they are also moving vehicle parts sourced from different suppliers and manufacturers across borders. This has created the appetite for expedited shipments to keep production running. In this sector, a single late or failed shipment could instantly cost automotive manufacturers millions of dollars.
Asia affirms role as a vital trading hub
In Asia Pacific (excluding China), the fastest growth in heavyweight shipments for the first seven months of the year came from India, the Philippines, Vietnam, Japan and Hong Kong. These markets reflect two of the region’s strongest trade corridors – Southeast Asia’s firm role as a manufacturing and sourcing base, and North Asia’s strategic position as a hub for high-value technology, industrial and automotive supply chains. Additionally, India, the Philippines, and Vietnam are also recognized as key markets of the geographic tailwinds initiative.
“As companies continue to manufacture out of Asia, balancing project timelines and building more resilient and agile supply chains become a priority. To maintain production continuity and ensure certainty, they are consolidating goods into heavier shipments. These non-negotiable conditions are also “urgency drivers” that put us at an advantage to help deliver our customers’ shipments at a definite time,” said Ken Lee, CEO for Asia Pacific, DHL Express.
In recent years, DHL Express has added several new infrastructures across the region, including an expanded global hub in Hong Kong, facilities near Cebu and Manila airports, gateway at Christchurch airport, Hanoi gateway near Noi Bai airport, as well as Delhi gateway, culminating in approximately 1,000 facilities in the Asia Pacific region. This is further supported by a robust aviation network of around 810 flights per day.
The issuer is solely responsible for the content of this announcement.
DHL – The logistics company for the world
DHL is the leading global brand in the logistics industry. Our DHL divisions offer an unrivaled portfolio of logistics services ranging from national and international parcel delivery, e-commerce shipping and fulfillment solutions, international express, road, air and ocean transport to industrial supply chain management. With approximately 389,000 employees in more than 220 countries and territories worldwide, DHL connects people and businesses securely and reliably, enabling global sustainable trade flows. With specialized solutions for growth markets and industries including technology, life sciences and healthcare, engineering, manufacturing & energy, auto-mobility and retail, DHL is decisively positioned as “The logistics company for the world”.
DHL is part of DHL Group. The Group generated revenues of approximately 82.9 billion euros in 2025. With sustainable business practices and a commitment to society and the environment, the Group makes a positive contribution to the world. DHL Group aims to achieve net-zero emissions logistics by 2050.
Arabian Post Staff -Dubai Saudi Arabia is broadening international security contacts as Iran-backed Houthi forces consolidate positions along Yemen’s Red Sea coast, with Britain backing Riyadh and reports of Israeli intelligence co-operation emerging as the kingdom confronts missile, drone and maritime threats. The Saudi outreach has accelerated after Houthi forces captured territory and islands around the Bab el-Mandeb Strait, the narrow waterway linking the Red Sea with […]
By TN Ashok The 18th BRICS Summit, held at Bharat Mandapam in New Delhi on September 12–13, 2026, was never going to escape Washington’s shadow — and it didn’t. Even as Prime Minister Narendra Modi steered eleven member states toward a unanimously adopted New Delhi Declaration that pointedly avoided naming the United States, President Donald […]
BRICS leaders have placed development priorities of emerging economies at the centre of their New Delhi agenda, endorsing stronger representation for the Global South while advancing cooperation on trade, technology, finance and sustainable growth.
Chinese President Xi Jinping used the 18th BRICS Summit to argue that countries should pursue development paths suited to their own national conditions, a message that overlapped with the summit’s broader emphasis on policy autonomy, inclusive growth and reform of global institutions.
Addressing the first leaders’ session on September 12, Xi marked 20 years of BRICS cooperation and said members had strengthened themselves through unity while preserving independence in choosing their economic and social models. He described BRICS as an increasingly important platform for emerging markets and developing countries.
The summit’s New Delhi Declaration gave that theme wider institutional form. Leaders called for a more representative international order, greater participation by developing countries in global decision-making and reforms to institutions including the United Nations, World Trade Organization and international financial architecture.
The declaration also reflected the diversity within the expanded grouping. Rather than prescribing a single model of development, BRICS leaders stressed national circumstances, differing capacities and the need for policy space, particularly in areas such as energy transition, industrialisation and climate action. That approach broadly matched Xi’s argument that development strategies should reflect domestic conditions rather than external templates.
Xi sought to extend the idea into technology policy. He proposed an initiative on artificial intelligence-enabled industrialisation, deeper cooperation in research and applications, and stronger industrial and supply-chain links. China also promoted open-source AI collaboration and international platforms intended to improve access to emerging technologies for developing economies.
Other leaders framed similar priorities through their own national perspectives. Prime Minister Narendra Modi emphasised resilience, innovation, cooperation and sustainability, the four themes of India’s 2026 BRICS chairship, and called for solutions developed within the grouping to serve a wider range of developing countries. He also urged members to translate summit commitments into practical programmes.
BRICS members agreed on measures spanning digital cooperation, food and energy security, health, trade facilitation and the use of local currencies in cross-border transactions. The declaration supported stronger payment connectivity while stopping short of endorsing a common BRICS currency.
The economic agenda also underlined the practical test facing the grouping. Members backed use of national currencies in trade and investment, stronger cooperation through the New Development Bank and efforts to improve financial resilience. Such measures are intended to widen financing options for developing economies without committing members to a single monetary framework or common currency.
The expanded bloc now brings together countries with sharply different political systems, strategic alignments and economic structures. That breadth gives BRICS a larger claim to represent developing-country concerns, but it also limits how far members can converge on detailed policy prescriptions. Analysts have noted differences over whether the group should remain primarily an economic and development forum or assume a stronger geopolitical role.
Those tensions were visible alongside the development agenda. Leaders opposed protectionism and unilateral economic measures, supported a stronger multilateral trading system and called for reforms that would increase the voice of developing countries. At the same time, members avoided turning the summit into a unified ideological platform, relying instead on consensus language broad enough to accommodate competing interests.
Xi’s second summit intervention on September 13 placed a “people-centred” development philosophy within a wider call for Global South cooperation. He urged progress on the UN Sustainable Development Goals, improvements to global climate governance and a consensus-based framework for governing artificial intelligence.
China’s approach also carries strategic implications. Beijing has increasingly used BRICS and other multilateral forums to promote its views on development, sovereignty and global governance. Some members share its criticism of unequal representation in international institutions, while others remain cautious about allowing BRICS to become identified with any single country’s geopolitical agenda.
Arabian Post Staff -Dubai Shipping through the Strait of Hormuz fell sharply at the start of the week, with only four commodity vessels recorded transiting the strategic waterway on Monday as attacks across the Middle East intensified. Preliminary ship-tracking data from Kpler showed the Monday total was down from 10 vessels on Sunday, extending a prolonged decline in commercial traffic through a passage that remains central to […]
China has showcased a fish-shaped autonomous underwater robot in Beijing, demonstrating biomimetic navigation technology that could support inspection, environmental monitoring, search operations and defence-related missions.
The BG-5 Golden Dragon Fish was demonstrated at the 2026 China International Fair for Trade in Services, held at Shougang Park from September 9 to 13. Developed by Boyagongdao Marine Technology Group, the robot is designed to resemble a golden arowana and propel itself through water with a flexible, multi-joint tail rather than a conventional propeller.
The machine can detect obstacles and adjust its route autonomously instead of following only a fixed, pre-programmed path, according to information released by the developer and statements made at the exhibition. Its fish-like movement is intended to improve manoeuvrability while giving the platform a less conspicuous profile than many conventional underwater vehicles.
Boyagongdao lists the BG-5 as a 640-millimetre-long robot weighing about 3 kilograms. The published specifications give it a maximum operating depth of 5 metres and a top speed of 0.6 metres per second. The company says infrared recognition supports autonomous obstacle avoidance, while wireless communications allow online debugging and control.
The manufacturer also offers a BG-5V configuration that combines the robotic fish with a software platform for more advanced experiments. The listed capabilities include global and local path planning, task allocation, formation control, cooperative transport and coordinated operations involving multiple robots.
Those functions broaden the possible uses beyond a single demonstration unit. Groups of small robotic fish could, in principle, divide an underwater area for inspection or monitoring, maintain formations and coordinate tasks in locations where larger vehicles would be harder to deploy. The company presents the platform for research and teaching as well as operational fields including search and salvage, hydropower, safety and rescue and national defence.
Claims that the robot has been formally deployed as an underwater surveillance system have not been substantiated by publicly available official information. The specifications and the developer’s stated defence-related work show that reconnaissance or monitoring applications are technically plausible, but the model displayed at CIFTIS was presented as a biomimetic robotic platform rather than as an announced military deployment.
Boyagongdao says its bionic robot series draws on more than a decade of research associated with Peking University’s College of Engineering. The systems use high-speed biomimetic drive mechanisms and central pattern generator control algorithms intended to reproduce the smooth, rhythmic movement of aquatic animals.
The company has also disclosed work on defence-oriented underwater technology. Its website says technologies developed for military-related directions have been adapted for higher education products, and company material from earlier exhibitions describes unmanned and intelligent underwater equipment as an area of military development. It has separately publicised the ROBO-SHARK, a larger shark-inspired underwater robot developed with a military unit.
The BG-5 itself is not a newly created model. Boyagongdao had displayed the robotic fish before this month’s services trade fair and promoted it earlier this year at Beijing technology events. The latest CIFTIS appearance nevertheless drew renewed attention because of the machine’s autonomous obstacle avoidance and increasingly realistic biomimetic movement.
China’s work on underwater robotics extends well beyond fish-shaped machines. Universities, research institutes and commercial groups are developing autonomous systems for coral monitoring, infrastructure inspection, marine ranching, emergency rescue and deep-sea research. Some platforms are designed to carry cameras, sonar or environmental sensors, while others use robotic arms for intervention tasks.
A separate ecological-monitoring deployment in Hangzhou has used biomimetic robotic fish to patrol West Lake, measuring indicators including water temperature and pH, detecting invasive species and transmitting data to monitoring centres. Other Chinese underwater robots have been used for reef observation and for identifying and removing crown-of-thorns starfish.
The BG-5 demonstration at CIFTIS focused on embodied intelligence underwater, where navigation software, sensing and propulsion are integrated into a machine that moves more like a living animal than a standard remotely operated vehicle.
A new round of 50 per cent US tariffs on Canadian goods took effect early Tuesday, adding the levy to 110 tariff items while removing 10 others from the list. The changes, effective from 12.01am Eastern Time on September 15, cover products including selected cheeses, motorboats, all-terrain vehicles, furniture, mattresses, lamps, aluminium products, paper goods and iron or steel structures. They form part of a package of […]
Arabian Post Staff -Dubai Oil prices rose on Tuesday as renewed attacks on Saudi Arabia and the continued shutdown of the kingdom’s East-West pipeline kept traders focused on the risk of further disruption to Middle East crude supplies. Brent crude climbed $1.24 to $106.93 a barrel, while US West Texas Intermediate gained $1.29 to $102.65 in Asian trading. The move followed another wave of Houthi attacks on […]
Eight major US banking trade groups have urged Senate leaders to tighten the CLARITY Act’s restrictions on stablecoin rewards, warning that a new regulatory “circuit breaker” would take effect only after damaging deposit outflows had already occurred. The warning came in a joint letter sent on Monday to Senate Majority Leader John Thune and Democratic Leader Chuck Schumer ahead of a procedural vote scheduled for Tuesday, September […]
Arabian Post Staff -Dubai Wall Street is preparing for the Federal Reserve to raise interest rates this week for the first time since July 2023, after another surge in oil prices and stubborn inflation pushed market expectations decisively towards tighter policy. Interest-rate futures on Monday assigned roughly a 90% probability to a quarter-point increase at the Federal Open Market Committee’s September 15-16 meeting. A move of 25 […]
China’s online retailers have begun offering the iPhone 18 Pro at discounts of up to 900 yuan only two days after pre-orders opened, cutting the effective price of Apple’s new flagship below its official launch level before retail sales begin.
The 256GB iPhone 18 Pro was listed on Pinduoduo at 9,099 yuan on Monday after platform and store incentives, compared with Apple’s official mainland China price of 9,999 yuan. The reduction is being funded through retailer subsidies and coupons rather than an official Apple price cut.
Pinduoduo’s offer combined a subsidised platform price with a 600-yuan store coupon, bringing the checkout cost to 9,099 yuan for eligible buyers. The listing indicated tens of thousands of orders and promised delivery by September 27, although availability and coupon access could change as the promotion continued.
Apple’s own online store and official channels continued to show the iPhone 18 Pro at the full 9,999-yuan starting price. Apple’s flagship store on Tmall was also focused on interest-free instalments rather than a direct reduction, while some other sellers were offering smaller incentives or trade-in-linked benefits.
Prices elsewhere were less aggressive. JD continued to display the 256GB model at 9,999 yuan when checked on Monday, while some Taobao offers relied on operator benefits, renewal subsidies or trade-in incentives. The variation showed that the headline reduction was not a uniform market-wide repricing of Apple’s newest Pro handset.
The early discount comes after Apple opened pre-orders in mainland China at 8pm on September 12. The iPhone 18 Pro and iPhone 18 Pro Max are due to go on general sale on September 18, placing the retailer promotion several days ahead of the formal release.
Demand signals were mixed across sales channels. Several configurations became harder to obtain shortly after pre-orders opened, with delivery estimates for some iPhone 18 Pro and Pro Max variants moving into late September or early October. That makes the appearance of a 900-yuan discount notable, but it does not by itself establish weak demand for the range.
Apple priced the iPhone 18 Pro from 9,999 yuan in China, while the iPhone 18 Pro Max starts at 10,999 yuan. Both models begin with 256GB of storage and are offered in 512GB, 1TB and 2TB versions. Apple is selling the phones in black, silver, glacier blue and burgundy.
The company unveiled the Pro models on September 9, introducing its A20 Pro processor and a 48-megapixel Fusion main camera with variable aperture. Apple has also highlighted improved battery life, upgraded on-device artificial intelligence performance and changes to the camera system as central features of the new generation.
The pricing move underscores the intensity of competition among China’s major e-commerce platforms during high-profile smartphone launches. Retailers commonly use flagship electronics to attract traffic, deploying platform subsidies, limited-time coupons and payment incentives that can push transaction prices below manufacturers’ official levels without altering the recommended retail price.
A similar pattern has appeared around earlier iPhone launches, when large platforms subsidised new models soon after pre-orders or sales began. Such promotions can narrow the gap between Apple’s premium positioning and the prices of competing high-end phones, while also giving platforms a way to compete for customers during launch periods.
The structure of Monday’s offer is therefore important. Buyers were not receiving a 900-yuan reduction directly from Apple. The lower price depended on incentives available through the retailer, and the final amount could vary according to coupon eligibility, payment method, membership status and stock.
Apple separately offers trade-in credits in China for customers exchanging eligible older iPhones. Its official programme provides credits ranging from 900 yuan to 8,300 yuan for qualifying devices, but those values depend on the model and condition of the handset being traded and are distinct from the retailer discount on a new iPhone 18 Pro.
By R Suryamurthy The 2026 New Delhi Declaration arrives at a revealing moment for BRICS: two decades after the grouping emerged as a shorthand for the rising economic weight of the Global South, it is no longer merely demanding a larger seat at the table of global governance, but is beginning to construct the institutional […]
Chevron’s Australia president expects liquefied natural gas prices to remain elevated for about six months as war-driven disruption to Middle East supply keeps the global market tight. Balaji Krishnamurthy, who leads Chevron’s Australian operations, said at the Gastech conference in Bangkok on Monday that higher prices were likely to persist while the market adjusts to reduced Qatari exports and constrained shipping through the Strait of Hormuz. He […]
Calls by leading artificial intelligence executives to slow development of advanced models pressured Asian semiconductor shares on Monday, but investors and strategists said robust spending on computing infrastructure was likely to keep the longer-term AI investment cycle intact. Samsung Electronics fell as much as 4.1% in early trading, while South Korea’s SK Hynix dropped 5.8%. Japan’s Advantest declined 4.7% and Kioxia Holdings slid 9.3% as markets assessed […]
Z. AI Co. has raised about $5 billion through a Hong Kong share placement and convertible bond sale, returning to the market within days of a 60-day issuance lock-up ending as heavy spending on artificial intelligence models continues to consume cash. The Beijing-based company, formerly known as Zhipu AI, sold 21.97 million new H shares at HK$714 each, raising roughly HK$15.7 billion, or about $2 billion. It […]
Egypt and India have agreed to pursue concrete steps towards lifting bilateral trade to $12 billion, with President Abdel Fattah El-Sisi and Prime Minister Narendra Modi also discussing ways to expand investment ties during talks on the sidelines of the 18th BRICS Summit in New Delhi.
The leaders met on Sunday as Egypt pressed for faster progress on a trade goal first set during El-Sisi’s state visit to New Delhi in January 2023. Egypt’s presidency said the discussions covered measures to strengthen the strategic partnership, increase commerce and encourage more investment from India in sectors including manufacturing, technology, clean energy and the automotive industry.
El-Sisi stressed the importance of translating the economic relationship into projects and commercial flows capable of taking trade to the $12 billion target. The two sides also reviewed opportunities for companies from India to expand their presence in Egypt, which Cairo has promoted as a production and export base serving markets in Africa, the Middle East and Europe.
Bilateral merchandise trade stood at about $6.5 billion in the 2025-26 financial year, according to figures cited by India’s embassy in Cairo. That leaves the two countries seeking almost to double the current level if they are to reach the objective discussed by their leaders.
Investment formed a central part of the meeting. Egypt highlighted manufacturing, information technology, renewable and clean energy, and vehicle production as areas where it wants to attract additional capital. Cairo has also sought greater participation by overseas companies in the Suez Canal Economic Zone and other industrial centres as it works to raise exports and secure more foreign currency.
Modi and El-Sisi reviewed the broader strategic partnership and discussed cooperation in economic and commercial fields, along with regional and international developments. Their meeting came as New Delhi hosted the September 12-13 BRICS summit under the theme of resilience, innovation, cooperation and sustainability.
Egypt joined BRICS at the start of 2024 and has since used the grouping to widen economic links with major emerging economies. The New Delhi summit brought together an expanded bloc whose agenda included trade, finance, technology, energy, climate issues and greater use of national currencies in cross-border transactions.
The trade push also builds on institutional contacts between Cairo and New Delhi. Egypt’s Foreign Minister Badr Abdelatty said during BRICS ministerial meetings in May that the two countries wanted to raise bilateral trade to $12 billion over five years and strengthen cooperation in investment, technology and other economic sectors.
El-Sisi and Modi upgraded relations to a strategic partnership in 2023, creating a framework for closer coordination across trade, investment, defence, energy and political consultation. The latest talks focused more narrowly on turning the economic component of that partnership into measurable gains, particularly through private-sector investment and expanded market access.
Egypt has been courting manufacturers as it seeks to increase domestic production and exports, while companies from India already operate in industries including chemicals, textiles, food processing and manufacturing. Cairo’s investment campaign has emphasised projects that can supply the domestic market while using Egypt’s trade agreements and transport links to reach neighbouring regions.
The two leaders also discussed international and regional issues, according to Egypt’s presidency, without announcing a separate bilateral agreement during the meeting. Their talks were among a series of leader-level engagements held around the BRICS gathering as member states sought to advance economic cooperation alongside the summit’s wider diplomatic agenda.
For Egypt, the $12 billion goal provides a benchmark for a relationship that has expanded beyond traditional merchandise trade into investment-led cooperation. For India, stronger commercial ties with Egypt offer access to a major Arab and African market and to production locations close to the Suez Canal, one of the world’s principal shipping routes.
Arabian Post Staff -Dubai Oman has called for new liquefied natural gas export routes that can bypass the Strait of Hormuz, arguing that the months-long disruption to the Gulf’s main energy artery has exposed a critical weakness in global gas supply chains. Energy and Minerals Minister Salim bin Nasser Al Aufi told the Gastech conference in Bangkok on Monday that producers and consumers needed to examine infrastructure […]
Bitcoin faces renewed downside warnings after Bloomberg Intelligence senior commodity strategist Mike McGlone argued that a stock-market correction and tighter US monetary policy could drive the cryptocurrency sharply lower, potentially towards $10,000. McGlone’s latest bearish case centres on Bitcoin’s failure to establish a sustained break above $80,000, its increasing sensitivity to equities and the prospect that higher interest rates could pressure speculative assets. Bitcoin was trading near […]
Chinese foreign exchange regulators are stepping up pressure on banks to persuade corporate clients to hedge more of their currency exposure, to reduce companies’ vulnerability to yuan swings.
Some local branches of the State Administration of Foreign Exchange have urged lenders to encourage businesses to increase hedging, extending a campaign that has pushed corporate derivatives use to record levels. The guidance targets companies with sizeable foreign-currency receipts or payments as the yuan trades near three-year highs.
The push reflects Beijing’s preference for companies to manage exchange-rate risk through forwards, swaps and options. SAFE has repeatedly promoted what it calls an exchange-rate risk-neutral approach, arguing that companies should focus on their underlying business and use hedging tools to reduce the effect of currency movements on earnings.
Corporate hedging has risen sharply this year. SAFE said enterprises used foreign-exchange derivatives covering 35.3 per cent of their currency transactions in the first half of 2026, up 5.3 percentage points from the full-year level in 2025. The contracted value of derivatives used for exchange-rate risk management reached nearly $1.4 trillion, an increase of about 40 per cent from a year earlier.
The regulator has also broadened access to hedging services. About 130 major domestic and foreign-funded banks can provide foreign-exchange derivatives to companies, while a SAFE database shared with lenders covers about 290,000 foreign-trade enterprises. Authorities have encouraged banks to expand online dealing channels and improve credit and margin arrangements for smaller businesses.
The effort also seeks more balanced corporate behaviour. The latest local instructions add to earlier informal guidance from the central bank and SAFE asking some lenders to lift corporate hedging ratios. Such measures are part of a wider effort to prevent companies from building large unprotected positions after periods when many exporters assumed the yuan would remain weak or move gradually.
That behaviour became more costly as the currency strengthened. The yuan has appreciated this year against the dollar and was trading near a three-and-a-half-year high last week, while global currency markets have been unsettled by changing interest-rate expectations, higher energy prices and geopolitical tensions. Exporters receiving dollars can suffer valuation losses when the yuan rises unless they hedge future receipts.
Beijing has simultaneously tried to avoid an excessive or disorderly rise in the currency. The People’s Bank of China removed a 20 per cent foreign-exchange risk reserve requirement on forward dollar purchases from March 2, lowering the cost of buying dollars forward after a strong yuan rally. The move gave companies and banks more flexibility while signalling that policymakers wanted to discourage one-sided appreciation expectations.
SAFE data show that China’s foreign-exchange market remains supported by large trade and capital flows. Banks recorded a $271.2 billion surplus in foreign-exchange settlement and sales in the first half. The regulator said the ratio measuring companies’ willingness to convert foreign-currency earnings into yuan stood at 65 per cent, while the ratio reflecting demand to purchase foreign currency was 61 per cent.
Foreign-exchange reserves rose to $3.438 trillion at the end of August from $3.419 trillion a month earlier. The yuan gained 0.49 per cent against the dollar during August, while the dollar weakened against a basket of major currencies, contributing to valuation changes in China’s reserve holdings.
Officials have stressed that greater hedging is intended to strengthen corporate resilience rather than direct the yuan toward a particular level. SAFE has said exchange rates are determined by market supply and demand and are difficult to predict, making risk management more important as two-way fluctuations become more common.
The regulator has reduced some transaction costs for smaller companies and encouraged financial institutions to simplify documentation for derivatives. Banks have been asked to use enterprise data to identify firms with foreign-currency exposure and offer products suited to their cash flows rather than promote speculative positions.
President Donald Trump has urged Ukrainian President Volodymyr Zelenskyy to stop attacking Russian oil refineries, arguing that the strikes are worsening a global diesel shortage as fuel prices climb sharply in the United States. Trump said on Sunday that he had already spoken directly with Zelenskyy about the issue and wanted Ukraine to select other targets inside Russia. Speaking during a visit to Ireland, he said Ukrainian […]
A commercial vessel was struck by a projectile in the Strait of Hormuz on Sunday, triggering a fire and an evacuation as fresh attacks intensified concerns over Middle East oil supplies. The United Kingdom Maritime Trade Operations said the vessel was hit while transiting the strategic waterway and that local authorities were assisting those on board. UKMTO initially said the extent of damage, the crew’s condition and […]
Arabian Post Staff -Dubai flydubai will begin dedicated freighter operations on October 1, adding three Boeing 737-800 cargo aircraft as the Dubai carrier broadens its freight business and strengthens capacity for regional trade. The aircraft will join the fleet through a wet-lease agreement with SolitAir and will be based at Al Maktoum International Airport, or Dubai World Central. Each freighter will offer payload capacity of up to […]
Metaplanet has cut the potential share pool attached to its Series 10 stock acquisition rights by 41.1%, reducing possible issuance to 188.19 million shares after shareholders challenged the dilution created by the executive compensation structure. The Tokyo-listed bitcoin treasury company said on September 11 that it would lower the number of shares underlying each Series 10 right from 696 to 410. The change reduces the aggregate potential […]