MNI BRIEF: Yuan Supported By Solid Fundamentals-Officials

The Chinese yuan will be supportd by solid economic fundamentals as the trade surplus remain robust, financial markets further open up and market sentiment improves, officials at the State Administration of Foreign Exchange told reporters on Thursday.

Capital inflows and outflows remained a basic balance in recent two months from a net inflow in the early part of this year, and the yuan has showed a two-way swing and maintained resilient when major currencies fell against a rally dollar, said Pan Gongsheng, deputy governor of the central bank and also head of the SAFE.

Wang Chunying, deputy head and spokesperson for SAFE, said trade surplus and overseas direct investment will remain stable, bolstered by supply chain recovery, wider export destinations and policy support for domestic demand, noting there is more room for the yuan-dominated assets to attract foreign investors in the equity and bond markets.