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’
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