Yuan May Strengthen At Year-end

The yuan may strengthen at the end of the year when the U.S. Federal Reserve is expected to end its rate-hike cycle and domestic company Q4 forex settlements add their support alongside effective implementation of pro-growth policies. The central bank has taken a firm stance against the yuan overshooting, mainly by setting a higher-than-expected central parity rate, as well as the issuance of offshore central bank bills. The timely use of countercyclical factor in central parity rate, forex reserve requirement ratio and window guidance will also help stabilise market expectations, said Zhao Wei, chief economist at Sinolink Securities. (Source: China Securities Journal)