Yuan Market Turbulence Short-term: Securities Journal

The unusual volatilities in the yuan bond and forex markets were likely impacted by sudden events and market sentiments, and they may not be systemic or long-term, the China Securities Journal said after the yuan fell below 6.5 against the U.S. dollar on Monday while CGB futures were down 0.35%. Yuan may continue to be supported by foreign investors' increasing interest in Chinese assets, and most recent foreign increases in yuan holdings come from global central banks and sovereign funds, the Journal said citing the State Administration of Foreign Exchange . MNI noted that the Chinese stock market lost CNY4 trillion in the last two trading sessions, and some investors attributed one reason to the yuan's recent depreciation, which led to some foreign capital outflow.