Caixin
Sep 30, 2024 06:49 PM
RESEARCH & ANALYSIS

Analysis: Improved Capital Returns Key to Sustainable Yuan Strengthening

00:00
00:00/00:00
Listen to this article 1x

While market concerns about an economic slowdown and deflationary pressure lingered following the interest rate cut by the People’s Bank of China in July, the yuan hit a turning point.

Yuan Strengthens Against U.S. Dollar 

By September, the currency had regained all the value it had lost against the U.S. dollar earlier in the year, nearing 7 per dollar. Why has the yuan strengthened so significantly?

loadingImg
You've accessed an article available only to subscribers
VIEW OPTIONS

Download our app to receive breaking news alerts and read the news on the go.

Get our weekly free Must-Read newsletter.

Share this article
Open WeChat and scan the QR code
DIGEST HUB
Digest Hub Back
Explore the story in 30 seconds
  • The yuan regained value against the U.S. dollar, nearing 7 per dollar by September due to expectations of and the actual U.S. interest rate cut of 50 basis points on Sept. 18.
  • This currency strengthening is fueled by shifts in corporate behavior, converting U.S. dollars into yuan.
  • For sustainable appreciation, China needs to bolster capital returns and improve corporate profitability through proactive fiscal and monetary policies.
AI generated, for reference only
Who’s Who
DH Fund Management Co. Ltd.
DH Fund Management Co. Ltd. is based in Zhejiang province and focuses on macro strategy. Xu Xiaoqing is its director of macro strategy. The company appears to analyze economic trends and monetary policy impacts, particularly in the context of China's financial market and currency movements.
AI generated, for reference only
What Happened When
July 2024:
Interest rate cut by the People’s Bank of China.
By September 2024:
The yuan had regained all the value it had lost against the U.S. dollar earlier in the year, nearing 7 per dollar.
Sept. 18, 2024:
U.S. interest rate cut by 50 basis points.
AI generated, for reference only
Subscribe to unlock Digest Hub
SUBSCRIBE NOW
NEWSLETTERS
Get our CX Daily, weekly Must-Read and China Green Bulletin newsletters delivered free to your inbox, bringing you China's top headlines.

We ‘ve added you to our subscriber list.

Manage subscription
PODCAST
Caixin Deep Dive: China’s Fiscal and Monetary Stimulus Combo
00:00
00:00/00:00