Foreign-exchange losses from yuan conversions are increasingly pressing
Chinese corporate profits, highlighting currency strength as a new earnings
risk. Goldman Sachs said Eoptolink Technology’s Q1 profit missed expectations
due largely to FX losses, while Citigroup attributed Sungrow Power Supply’s
Earnings decline to a 400 million yuan ($58.6 million) foreign-exchange loss.
Chanson & Co.’s Shen Meng said geopolitical conflicts may trigger short-term
exchange rate volatility, affecting businesses, though long-term impact may be
limited, with uncertainty over the conflict’s duration remaining a key concern.
