Yuan Underperforms, National Financial Work Conference Starts Today

USD/CNH mostly pushed higher post the Asia close on Friday. The pair got to 7.3350 but found selling interest around this level. We closed near 7.3335 and sit slightly lower in the first part of trade on Monday in Asia Pac (near 7.3300). USD/CNY finished up at 7.3174 on Friday, while the CNY NEER (J.P. Morgan Index) fell 0.33% to 123.54.

• The local data calendar is empty today, but we get official October PMIs tomorrow. The market expects a steady manufacturing outcome (50.2), and slight improvement in non-manufacturing (51.8 from 51.7).
• A meeting between China President Xi Jinping and US President Biden at the November APEC gathering in San Francisco has been agreed in principle, although the China Foreign Minister stated that the road to such a meeting is likely to be bumpy (see this BBG link for more details).
• Also note the National financial work conference kicks off today. LGFVs and the property market are likely to be key focus points (see this SCMP link for more details).
• In the equity space the Golden Dragon Index was up a touch in Friday US trade, but finished the week comfortably higher. To recap, the CSI 300 finished last week strongly, up 1.37%, to put the index back above 3560. Stepped up fiscal stimulus efforts appear to be aiding the equity backdrop, although this yet to aid the currency.
• Embattled property developer Evergrande faces a court hearing today in Hong Kong, which is focused on wind up risks, as the company has struggled with its restructuring plans (see this BBG link).