News

Offshore Yuan Remains Firm
The offshore yuan firmed to around 6.77 per dollar, as investors assessed the latest inflation data and their implications for China's economic outlook. Consumer inflation rose 1.2% annually in May 2026, slightly below expectations of 1.3%, indicating that weak household demand continued to offset inflationary pressures from higher global energy prices linked to the Middle East conflict. Meanwhile, producer prices climbed to 3.9% from 2.8% in April and marking the highest reading since July 2022. The increase extended the recovery from China's long producer-price deflation period, driven largely by higher commodity and energy costs. While China has cushioned part of the energy shock through its strategic oil reserves and renewable energy capacity, persistent cost pressures could squeeze corporate profit margins. A broader pass-through to consumer prices could also erode household consumption, although weak domestic demand has so far limited such spillovers.
Published on 2026-06-10

Offshore Yuan Remains Firm
The offshore yuan firmed to around 6.77 per dollar on Wednesday as investors assessed the latest inflation data and their implications for China's economic outlook. Consumer inflation rose 1.2% annually in May 2026, slightly below expectations of 1.3%, indicating that weak household demand continued to offset inflationary pressures from higher global energy prices linked to the Middle East conflict. Meanwhile, producer prices climbed to 3.9% from 2.8% in April and marking the highest reading since July 2022. The increase extended the recovery from China's long producer-price deflation period, driven largely by higher commodity and energy costs. While China has cushioned part of the energy shock through its strategic oil reserves and renewable energy capacity, persistent cost pressures could squeeze corporate profit margins. A broader pass-through to consumer prices could also erode household consumption, although weak domestic demand has so far limited such spillovers.
Published on 2026-06-10

Offshore Yuan Remains Firm
The offshore yuan firmed to around 6.77 per dollar on Thursday as investors assessed the latest inflation data and their implications for China's economic outlook. Consumer inflation rose 1.2% annually in May 2026, slightly below expectations of 1.3%, indicating that weak household demand continued to offset inflationary pressures from higher global energy prices linked to the Middle East conflict. Meanwhile, producer prices climbed to 3.9% from 2.8% in April and marking the highest reading since July 2022. The increase extended the recovery from China's long producer-price deflation period, driven largely by higher commodity and energy costs. While China has cushioned part of the energy shock through its strategic oil reserves and renewable energy capacity, persistent cost pressures could squeeze corporate profit margins. A broader pass-through to consumer prices could also erode household consumption, although weak domestic demand has so far limited such spillovers.
Published on 2026-06-10

Offshore Yuan Rises on Strong Exports
The offshore yuan strengthened to around 6.77 per dollar on Tuesday, as stronger-than-expected trade data highlighted the resilience of China's export sector amid signs of an economic slowdown. Exports surged 19.4% year-on-year to a record USD 376.8 billion in May, driven by inventory building aimed at mitigating rising shipping and energy costs linked to the Gulf conflict, alongside robust demand for semiconductors and AI-related products. While the Middle East conflict has yet to significantly affect exports, weak domestic demand continues to leave the economy vulnerable to a deterioration in global conditions, reinforcing expectations for further policy easing. Meanwhile, imports jumped 27.4% to USD 271.4 billion, beating forecasts of a 25% increase as firms stepped up purchases of foreign chips and equipment. Consequently, China's trade surplus widened to USD 105.4 billion, its highest level since January.
Published on 2026-06-09

Offshore Yuan Holds Gains on Strong Exports
The offshore yuan held its gains around 6.78 per dollar on Tuesday, as stronger-than-expected trade data highlighted the resilience of China's export sector despite signs of an economic slowdown. Exports surged 19.4% year-on-year to a record USD 376.8 billion in May, driven by inventory building aimed at mitigating rising shipping and energy costs linked to the Gulf conflict, alongside robust demand for semiconductors and AI-related products. While the Middle East conflict has yet to significantly affect exports, weak domestic demand continues to leave the economy vulnerable to a deterioration in global conditions, reinforcing expectations for further policy easing. Meanwhile, imports jumped 27.4% to USD 271.4 billion, beating forecasts of a 25% increase and suggesting that domestic demand held up well despite rising inflationary pressures. Consequently, China's trade surplus widened to USD 105.4 billion, its highest level since January.
Published on 2026-06-09

Offshore Yuan Holds Gains on Strong Exports
The offshore yuan held its gains around 6.78 per dollar on Tuesday, as stronger-than-expected trade data highlighted the resilience of China's export sector despite signs of an economic slowdown. Exports surged 19.4% year-on-year to a record USD 376.8 billion in May, driven by inventory building aimed at mitigating rising shipping and energy costs linked to the Gulf conflict, alongside robust demand for semiconductors and AI-related products. While the Middle East conflict has yet to significantly affect exports, weak domestic demand continues to leave the economy vulnerable to a deterioration in global conditions, reinforcing expectations for further policy easing. Meanwhile, imports jumped 27.4% to USD 271.4 billion, beating forecasts of a 25% increase as firms stepped up purchases of foreign chips and equipment. Consequently, China's trade surplus widened to USD 105.4 billion, its highest level since January.
Published on 2026-06-09

Offshore Yuan Edges Higher
The offshore yuan edged higher to around 6.78 per dollar on Monday, trimming losses from the previous week as the currency showed resilience against a firmer US dollar ahead of a slate of key economic releases due later this week. The greenback strengthened after a stronger-than-expected US jobs report fueled expectations that the Federal Reserve may keep policy tighter for longer. The yuan’s resilience also came even as the People’s Bank of China has consistently set weaker-than-expected daily midpoint fixings in an effort to temper the currency’s appreciation. Nevertheless, the yuan remains about 3.1% stronger against the dollar so far this year, ranking among the better-performing emerging market currencies since the onset of the Iran conflict. Meanwhile, investors are now focused on upcoming Chinese economic data, particularly trade and inflation figures, which are expected to offer fresh signals on China’s economy amid external and domestic headwinds.
Published on 2026-06-03

Offshore Yuan Retreats on Mixed PMI Data
The offshore yuan weakened to 6.76 per dollar on Wednesday, retreating from a more than three-year high reached in the previous session, as investors weighed mixed PMI data that highlighted the fragility of China's economic recovery. A private survey showed China's Composite PMI rose to a three-month high of 54 in May, with the services PMI also reaching a three-month peak of 54.4. However, manufacturing activity lost momentum, with the PMI falling to 51.8 from April's five-year high of 52.2. Earlier this week, official data painted a more subdued picture, showing the Composite PMI inching up to 50.5 from 50.1, supported by a modest pickup in non-manufacturing activity (50.1 vs 49.4), while the manufacturing PMI slipped to the expansion-contraction threshold of 50 from 50.3. Moreover, risk sentiment remained restrained amid renewed tensions in the Middle East after Iran launched ballistic missiles toward neighboring countries, prompting retaliatory US strikes on Qeshm Island.
Published on 2026-06-03

Offshore Yuan Steady After Mixed PMI Data
The offshore yuan steadied around 6.77 per dollar on Thursday despite mixed PMI data that highlighted the fragility of China’s economic recovery. A private survey showed Composite PMI rose to a three-month high of 54 in May, with the services PMI also reaching a three-month peak of 54.4. However, manufacturing PMI fell to 51.8 from April's five-year high of 52.2. Official data also showed that the Composite PMI rose to 50.5 from 50.1 amid a modest pickup in non-manufacturing activity (50.1 vs 49.4), despite manufacturing PMI slipping to 50 from 50.3. On the trade front, the US Trade Representative proposed tariffs of up to 12.5% on imports from 60 trading partners, including China, over alleged failures to curb forced-labour-linked imports. The EU also unveiled the Industrial Accelerator Act and Cybersecurity Act, potentially restricting Chinese firms’ access to parts of its market, prompting Beijing to vow retaliation and raising fears of a wider trade dispute between major economies.
Published on 2026-06-03

Offshore Yuan Steady After Mixed PMI Data
The offshore yuan steadied around 6.77 per dollar on Friday despite mixed PMI data that highlighted the fragility of China’s economic recovery. A private survey showed Composite PMI rose to a three-month high of 54 in May, with the services PMI also reaching a three-month peak of 54.4. However, manufacturing PMI fell to 51.8 from April's five-year high of 52.2. Official data also showed that the Composite PMI rose to 50.5 from 50.1 amid a modest pickup in non-manufacturing activity (50.1 vs 49.4), despite manufacturing PMI slipping to 50 from 50.3. On the trade front, the US Trade Representative proposed tariffs of up to 12.5% on imports from 60 trading partners, including China, over alleged failures to curb forced-labour-linked imports. The EU also unveiled the Industrial Accelerator Act and Cybersecurity Act, potentially restricting Chinese firms’ access to parts of its market, prompting Beijing to vow retaliation and raising fears of a wider trade dispute between major economies.
Published on 2026-06-03

Offshore Yuan Remains at Multi-Year High
The offshore yuan strengthened to around 6.76 per dollar on Tuesday, remaining at its strongest level since February 2023, as investors increasingly viewed Chinese assets as a relative safe haven amid heightened tensions involving Iran. Geopolitical uncertainty persisted after the latest developments indicated that Iran had suspended indirect talks with Washington over Israel's military operations in Lebanon, even as US President Trump asserted that negotiations remained ongoing. China's diversified energy supply base and comparatively limited direct exposure to the Middle East have reinforced the attractiveness of its financial markets during the conflict, underpinning the yuan's resilience. However, further upside in the yuan may be capped by Beijing's preference for exchange-rate stability, as reflected in the People's Bank of China's continued weaker-than-expected daily fixings, as well as potential dollar-buying interventions by major state-owned banks.
Published on 2026-06-02

Offshore Yuan Remains at Multi-Year High
The offshore yuan strengthened to around 6.76 per dollar on Tuesday, holding near its strongest level since February 2023, as investors increasingly regarded Chinese assets as a relative safe haven amid heightened geopolitical tensions involving Iran. Geopolitical uncertainty persisted after the latest developments indicated that Iran had suspended indirect talks with Washington over Israel's military operations in Lebanon, even as US President Trump asserted that negotiations remained ongoing. China's diversified energy supply base and comparatively limited direct exposure to the Middle East have reinforced the attractiveness of its financial markets during the conflict, underpinning the yuan's resilience. However, further upside in the yuan may be capped by Beijing's preference for exchange-rate stability, as reflected in the People's Bank of China's continued weaker-than-expected daily fixings, as well as potential dollar-buying interventions by major state-owned banks.
Published on 2026-06-02

Offshore Yuan Remains at Multi-Year High
The offshore yuan strengthened to around 6.76 per dollar on Tuesday, holding near its strongest level since February 2023, as investors increasingly regarded Chinese assets as a relative safe haven amid heightened tensions involving Iran. Geopolitical uncertainty persisted after the latest developments indicated that Iran had suspended indirect talks with Washington over Israel's military operations in Lebanon, even as US President Trump asserted that negotiations remained ongoing. China's diversified energy supply base and comparatively limited direct exposure to the Middle East have reinforced the attractiveness of its financial markets during the conflict, underpinning the yuan's resilience. However, further upside in the yuan may be capped by Beijing's preference for exchange-rate stability, as reflected in the People's Bank of China's continued weaker-than-expected daily fixings, as well as potential dollar-buying interventions by major state-owned banks.
Published on 2026-06-02

Offshore Yuan Retreats from Over 3-Year High
The offshore yuan edged lower to around 6.76 per dollar on Monday, retreating from a more than three-year high reached in the previous session, as investors weighed mixed PMI data amid concerns about the economic impact of the ongoing Middle East conflict. Official data showed China's Composite PMI rose to 50.5 in May from 50.1 in April, supported by a slight rebound in the non-manufacturing sector (50.1 vs 49.4), while the manufacturing PMI (50.0 vs 50.3) edged lower. A private survey also showed that the manufacturing PMI slipped to 51.8 from April's five-year high of 52.2. Firms continued to closely watch developments in the Middle East as they faced subdued demand and higher input costs stemming from regional tensions. The prospects for a US-Iran ceasefire agreement remained uncertain, despite both sides having recently exchanged messages seeking amendments to a draft deal that would extend the ceasefire and reopen the Strait of Hormuz.
Published on 2026-06-01

Offshore Yuan Set for Second Monthly Gain
The offshore yuan steadied around 6.76 per dollar on Friday, hovering near its strongest level since February 2023, bolstered by reports of an extended ceasefire agreement between the US and Iran. Both sides agreed to prolong the truce for another 60 days to allow further negotiations over Tehran’s nuclear program, although US President Donald Trump has yet to formally approve the arrangement. Meanwhile, China’s currency has drawn additional support from the global AI investment boom, which has fueled demand for Chinese technology exports and eased concerns in Beijing over yuan appreciation. For the month, the yuan remains on track for a second consecutive monthly gain despite continued weaker-than-expected daily midpoint fixings from the People's Bank of China, as investors navigated rapidly shifting developments surrounding the Iran conflict while also assessing progress following the meeting between Presidents Donald Trump and Xi Jinping earlier this month.
Published on 2026-05-29

Offshore Yuan Trades Near 3-Year High
The offshore yuan traded around 6.78 per dollar on Thursday, hovering near its strongest level since February 2023, buoyed by encouraging domestic economic data. Industrial profits in China jumped 18.2% year-on-year in January–April 2026, supported by robust demand for Chinese electronics and elevated oil prices linked to Middle East tensions. The figures followed earlier signs of slowing economic momentum reflected in industrial output and retail sales data. However, gains in the yuan were limited by a stronger US dollar, as lingering uncertainty surrounding a potential US-Iran agreement continued to bolster safe-haven demand. The US recently confirmed defensive airstrikes on an Iranian military site, while key sticking points in negotiations, including Tehran’s control over the Strait of Hormuz and its nuclear program remain unresolved.
Published on 2026-05-27

Offshore Yuan Returns to Over 3-Year High
The offshore yuan edged higher to around 6.78 per dollar on Wednesday, returning to its strongest level since February 2023, buoyed by encouraging domestic economic data. Industrial profits in China jumped 18.2% year-on-year in January–April 2026, supported by robust demand for Chinese electronics and elevated oil prices linked to Middle East tensions. The figures followed earlier signs of slowing economic momentum reflected in industrial output and retail sales data. Still, gains in the yuan were capped after the People's Bank of China set the daily midpoint fixing at 6.8291 per dollar, 408 pips weaker than a Reuters estimate. The central bank has consistently guided the fixing below market expectations, a move widely interpreted as an effort to maintain currency stability and prevent excessive yuan appreciation.
Published on 2026-05-27

Offshore Yuan Trades Near 3-Year High
The offshore yuan traded around 6.78 per dollar on Thursday, hovering near its strongest level since February 2023, buoyed by encouraging domestic economic data. Industrial profits in China jumped 18.2% year-on-year in January–April 2026, supported by robust demand for Chinese electronics and elevated oil prices linked to Middle East tensions. The figures followed earlier signs of slowing economic momentum reflected in industrial output and retail sales data. Still, gains in the yuan were capped after the People's Bank of China set the daily midpoint fixing at 6.8291 per dollar, 408 pips weaker than a Reuters estimate. The central bank has consistently guided the fixing below market expectations, a move widely interpreted as an effort to maintain currency stability and prevent excessive yuan appreciation.
Published on 2026-05-27

Offshore Yuan Slips from 3-Year Peak
The offshore yuan weakened to around 6.78 per dollar on Tuesday, retreating from a more-than three-year high reached in the previous session as renewed military strikes eroded optimism over a potential US-Iran peace deal. The US conducted military strikes in southern Iran, targeting vessels allegedly attempting to lay naval mines, along with missile launch sites, in what Washington described as defensive operations. Further weighing on the yuan, the People's Bank of China set the midpoint rate at 6.8288 per dollar, 466 pips weaker than the Reuters estimate, though still its strongest fixing since February 2023. The central bank has continued to guide the midpoint softer than market expectations, a strategy widely viewed as an effort to preserve currency stability. The yuan is expected to remain broadly range-bound, supported by the PBoC’s stability-focused stance and easing corporate dollar-selling pressures.
Published on 2026-05-26

Chinese Yuan Hits 3-year High
The Chinese Yuan touched 6.78 against the USD, the highest since February 2023. Over the past 4 weeks, US Dollar Chinese Yuan lost 0.65%, and in the last 12 months, it decreased 5.5%.
Published on 2026-05-25