The weakening of the Chinese currency brought fears in the stock markets as they hoped Yuan to fall. Speculators like George Soros were warned by the State media not to short-sell the Yuan. Yuan Hibor is the benchmark which is used to determine the prices of loans in the currency outside China. It was introduced in 2013 by the Hong Kong Treasury Market Association. On January 12, Hong Kong Interbank rates for three-month yuan loans dropped to 4.87 percent much lower than in December. Supplies drained in the market after the fall, and the effect was that it became expensive for borrowers who needed short trade loans.
China’s Yuan at Risk from Speculators
The Highland Capital Management (HCM) was founded in 1993 with headquarters based in Dallas, Texas, and branches in Seoul, Sao Paulo, New York, and Singapore. Currently, it is valued at $21 billion. It specializes in private equity, collateral loan obligations, credit hedge funds, long-only funds, distressed and special situations and separate accounts. Since its inception, HCM has invested in other areas apart from the financial markets. At Highland, they believe in community culture, and they do contribute time and resources to better the lives of those in need. They mainly focus their contributions to education, veteran initiatives, and healthcare. The leadership of HCM is under James Dondero, who is the president and a co-founder of the company.
Jim Dondero has a vast experience of over 30 years in credit markets. Before HCM came to be, he worked for a GIC subsidiary as the Chief Investment Officer where through ingenuity and experience improved the company to a $2 billion entity between 1989 and 1993. Before then, he worked for American Express and managed over $1 billion in fixed income funds. He is also the chairman of the Nexbank, CCS Medical, and Cornerstone Healthcare. Additionally, he is also a board member of the American Banknote and the MGM studios. Jim is a philanthropist and personally supports education initiatives, public policies among others. Watch Jim and his team ringing the NYSE Closing Bell.
Dondero is a former student of the University of Virginia where he studied BS in Commerce and majored in Accounting and Finance. He has certifications such as a Certified Public Accountant, Certified Management Accountant, and Chartered Financial Analyst. For more insight on the status of the China’s economy click here.