Kasikornbank has forecast that the baht could move in a range of Bt30-30.30 to the dollar this week (December 30 to January 3). Investors sold dollars after US economic data showed signs of disappointments such as weaker-than-expected orders for durable goods and lower new-home sales.

The baht was up 8 per cent in 2019 from the 2018 closing price of Bt32.55, according to Kasikornbank.

The baht’s appreciation has been driven by the country’s current account surplus and investor perception of the baht being a safe-haven currency.

As of December 27, the baht moved in a range of Bt30.15 to Bt32.43 in 2019. Thai exporters have complained about the baht’s appreciation hurting exports and recently Japanese carmaker Mazda said it might move a part of its car manufacturing facility in Thailand back to Japan due to the impact of the strong baht.

The market will be closely watching the Bank of Thailand’s economic report for November, which is due to be released on Monday, as well as December’s inflation rate. Among key external events, investors are waiting for the signing of a trade deal between the United States and China and release of the Fed’s meeting minutes. Key US economic data due this week include the United States purchasing managers index, consumer confidence index in December, number of home-purchase contracts, the home price index and jobless benefits claims.

The Standing Committee of the National People’s Congress voted to adopt the revision of the Securities Law — the fundamental law governing the capital market — on Saturday, after the fourth review of the draft revision during a six-day session.

Based on the experience of the sci-tech innovation board, the revised law made new arrangements of initial pubic offerings to gradually implement the registration-based system across the whole market, said Cheng Hehong, director of the Department of Legal Affairs of the China Securities Regulatory Commission, the top securities regulator.

Specifically, the revision abolished the system of public offering review committee, whereby the CSRC reviews public offering applications, and authorized stock exchanges to review the applications. The CSRC will instead be responsible for securities registration, Cheng said.

The revision also authorized the State Council, China’s Cabinet, to decide the scope and steps of registration-based reform, Cheng said, adding that the country will phase-in implementing the registration-based system and ensure a smooth transition.

“The CSRC will fully consider the actual situation of the market, and especially coordinate securities issuances, securities registrations and the market capacity to digest (the reforms),” Cheng said at a briefing on Saturday.

The CSRC is ramping up efforts to push ahead the registration-based reform on the ChiNext, Shenzhen’s innovative enterprise-heavy board, he added.

The revised law made information disclosure requirements stricter and streamlined requirements of issuing securities, in compliance with the registration-based reform.

The revision also focused on improving the mechanism of investor protection, and set a separate section of investor protection, according to Gong Fanrong, an official with the NPC’s Financial and Economic Affairs Committee.

It distinguished ordinary investors with professional investors and made different investor protection arrangements accordingly, and established a system of securities civil action that fits characteristics of the domestic market, Gong said.

Moreover, illegal behaviors in capital markets will face much higher punishments under the revised law.

For instance, if a firm indulges in fraudulent public offerings and has yet to issue the securities, it will face fines of between 2 million yuan ($285,000) and 20 million yuan, according to the revision.This contrasts with the current effective standard between 300,000 yuan and 600,000 yuan.

Under the new law, the CSRC could also forbid securities trading by individuals engaging in serious securities legal breaches for a period and even lifetime, on top of the current ban on being hired as senior officials in listed firms and carrying out securities business.