Corporates face 'disaster' on renminbi Tarfs, say traders
Some companies "may run out of cash"; Taiwan regulator said to be looking at new restrictions
The continuing depreciation of the renminbi has left corporates with exposure to structured products linked to the currency facing heavy potential losses – or even bankruptcy – if it loses more ground to the US dollar, according to traders in the region. As a result, some say regulators are set to place further restrictions on the product.
Since the start of the year the Chinese currency has dropped more than 2%, after already falling 4% in August following an unexpected devaluation by the
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