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
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 economy

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’

Topic |   China economy
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
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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