The yuan may face seasonal weakness earlier than usual as Chinese firms move to
lock in exchange rates ahead of record dividend payouts, analysts said. Hong
Kong-listed mainland firms plan nearly $70 billion in distributions, peaking at
$24.1 billion in June. Lower hedging costs and cheaper forward rates are
prompting earlier FX conversions, potentially bringing forward pressure on the
currency. The PBOC has eased rules to reduce forex costs while maintaining a
firm yuan fixing.
