The Chinese yuan, also known as the renminbi, is already convertible under the current account - the broadest measure of trade in goods and services. However, the capital account, which covers portfolio investment and borrowing, is still closely managed by Beijing because of worries about abrupt capital flows.

Miners protest in Shuangyashan, Heilongjiang, last week. Photo: SCMP Picture

Have expectations of a weaker yuan been reversed?

Bearish expectations for the mainland Chinese currency and stock markets have not been reversed as the economy struggles to transform from “old” to “new”, with analysts saying that recent heavy losses for China bears do not mean that fundamental problems have been fixed.

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