SINGAPORE (Dec 17): A slowing economy, a deleveraging campaign and a trade standoff with the US have weighed on Greater China equities and its currency in this year. The Shanghai Composite Index and Hong Kong’s Hang Seng Index tumbled as much as 31% and 26% respectively from February to October, alongside other emerging markets, as investors’ risk appetite turned sour amid trade uncertainties and fundamental headwinds. The Chinese renminbi depreciated as much as 11% against the greenback during the April-to-November period, when trade tensions escalated. Currency devaluation was widely interpreted as an effort made by the Chinese authorities to cushion the slowdown and make its goods and services more competitive in global markets.

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