China Press Digest Sep 27: Yuan, Consumption, Two Michaels

The following lists highlights from Chinese press reports on Monday:

• The yuan's weakening in August didn't necessarily spell the end of the currency's current round of rally, Guan Tao, the chief global economist of BoC International and a former forex official, wrote in a column published by the 21st Century Business Herald. The yuan's movement may become more unpredictable as it gets more closely linked to asset prices, and the exchange rate will fluctuate more in excess, Guan wrote. The yuan has become more like a mature currency as the exchange gets more market-based, and its gains or losses are no longer simply tied to trade surpluses, wrote Guan. The yuan's recent round of appreciation was also not tied to the banks' exchange settlements, including those done on behalf of their clients, Guan wrote.
• China's consumption will continue to recover steadily in October and the annual retail sales is expected to total CNY44 trillion, a gain of 12.5% y/y or about 8% over 2019 before the pandemic, the Securities Daily reported citing an official from the Ministry of Commerce. The ministry will promote consumption in the upcoming week-long holiday in October as well as the year-end sales season, the daily said citing Wang Bin, deputy director of the Department of Consumption Promotion. The ministry will stabilize the sales of big-ticket items including automobiles, home appliances and furniture as well as catering, which account for one-fourth of retail sales, mainly by encouraging the replacement of old products and expand the consumption of used cars, the daily cited Wang as saying.
• Two Canadians, Michael Kovrig and Michael Spavor, confessed their guilt for crimes and were released on bail for medical reasons before they departed China on a plane to Canada on Friday, the Global Times reported citing a source close to the matter. After the confirmation from related departments and diagnosis of professional medical institutes and under the guarantee of the Canadian ambassador to China, the two were released on bail, the newspaper said citing the source. The two Canadians wrote confession and repentance letters and in case of violation, China can resume the trial of the alleged criminal acts, the newspaper said.