Chinese firms in Russia hit by freefall of Ruble
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E-mail CRI, December 19, 2014
Chinese companies operating in Russia are being left with their hands tied amid the massive downturn in the value of the Russian ruble.
A group of auto makers led by Geely say they expect their net profits to be cut in-half this year due to the losses brought on by the Ruble's massive depreciation.
Other companies in Russia feeling the pinch include Chongqing Lifan, Great Wall, Foton trucks, Fuyao Car Window Shields and logging company Harbin Investment.
Amid the freefall of the Russian currency, China's foreign exchange regulator has issued a new statement, saying it is closely watching the situation.
The State Administration of Foreign Exchange is also recommending Chinese companies to use forwards and swaps to avoid risks.
Russia and China entered into a currency swap agreement in October worth 150-billion yuan.
That deal has been criticized, as it has pegged the value of the renminbi to the then-value of the ruble.
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