KUALA LUMPUR (Aug 17): After the 2% shock devaluation of the yuan last week that sent global markets into a frenzy, the Chinese currency may be adjusted further going forward, banking firm HSBC warned today.

The adjustment may or may not be in the form of direct changes to the reference rate, said HSBC Malaysia Global Markets head Alvin Kong today.

"It (the addjustment) may be in other forms, such as the Chinese authorities widening the trading band of the yuan, for example," he told reporters on the conclusion of the one-day forum, "Renminbi and China's Global Future", organised by the banking group.

This means that the hedging policies of businesses, including those in Malaysia that are exposed to the renminbi, may have to change to accommodate these changes if it were to materialise, said HSBC Global Emerging Markets head Paul Mackel.

"In other words, prepare yourself for higher uncertainties," he added.