Standard Chartered banks on yuan assets amid US-China tensions, Trump risks

Market volatility under US president Donald Trump and the rising appeal of yuan assets mean a boom for Standard Chartered Bank’s capital markets and trading business this year, according to a senior executive.

Trump’s inflationary policy plans and tariff rhetoric on China and other countries are moving the markets – altering bets on interest rates, foreign exchange and credit, said John Thang, the bank’s head of markets and strategic client management and solutions for Hong Kong and Greater China, as well as North Asia.

“The market has been fluctuating whenever Trump made a gesture or without saying anything, let alone if he said something,” Thang said.

Standard Chartered, one of Hong Kong’s three note-issuing banks, has already seen increased demand for foreign-exchange management and hedging. The need for companies and financial institutions to manage risks will keep growing, Thang said.

Yuan-related risk management will be a significant topic for market participants, as the currency has been fluctuating, he added.