The yuan has gradually strengthened against the US dollar since the end of May, while foreign holdings of high-yield yuan-denominated bonds continue to increase. Photo: AP
The yuan has gradually strengthened against the US dollar since the end of May, while foreign holdings of high-yield yuan-denominated bonds continue to increase. Photo: AP

China embraces rising capital inflows as rivalry with US intensifies

  • Investors are increasingly pouring money into a post-coronavirus China, but the trend could reverse if current high interest rates are lowered or the US dollar strengthens
  • Chinese authorities are relying on market instruments to regulate cross-border capital flows, and ‘won’t step in unless unusual or extreme circumstances occur’

The yuan has gradually strengthened against the US dollar since the end of May, while foreign holdings of high-yield yuan-denominated bonds continue to increase. Photo: AP
The yuan has gradually strengthened against the US dollar since the end of May, while foreign holdings of high-yield yuan-denominated bonds continue to increase. Photo: AP
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