When China revalued the Yuan last month, many Chinese conglomerates incurred massive losses on their foreign exchange holdings, which instantaneously depreciated 2% in real terms. Ping An, a large Chinese insurance company, lost nearly 300 Billion RMB, as the majority of its forex reserves were and still are held in USD. As a result, Ping An recently announced it will begin to diversify its reserves, in anticipation of future revaluations. While Ping An’s decision is insignificant, in and of itself, it seems to be part of a broader trend of forex diversification, among both central banks and multinational firms.

Read More: Ping An acts to cut currency risk