China Removes Countercyclical Factors in Some Yuan Pricing: Daily

China has gradually eased the use of countercyclical factors in some of its recent daily fixing against the dollar to increase transparency and efficiency and allow the market a bigger role, the Economic Information Daily reported citing the Secretariat of the China Foreign Exchange Self-Regulatory Mechanism. The move has corresponded to the recent gains in corporate settlement and decreases in sales exchange rates and wider foreign exchange movements, the Daily cited Wang Youxin, a researcher from the BOC Research Institute. The yuan should remain strong given current economic fundamentals and China's interest spreads against those of other nations, but uncertainties exist in Q4 given a possible second recession and financial market volatilities in Europe and America, and the unknown regulatory intentions of Chinese regulators, Wang said.