Chinese yuan remains flat on new stimulus talks

The Chinese yuan held steady as the government reiterated its support for the struggling property market.

Chinese yuan remains flat on new stimulus talks

investors were looking for more robust measures to boost home demand. This cautious stance could result in ongoing market volatility as investors evaluate the effectiveness of current policies amid China’s economic challenges.

Recent developments in the housing sector, coupled with global economic trends, may further influence the yuan. The lackluster housing policy has dampened investor confidence, prompting some to shift their preference to other currencies, such as the dollar.

Focus now turns to the upcoming release of China’s GDP and Industrial Production Report

The market expects a potential decline in GDP growth, forecasting a drop to 4.5% in Q3 from 4.7% in Q2, while industrial production is anticipated to remain steady at 4.6% year-on-year for September. A decrease in GDP growth could weaken investor confidence in the yuan, possibly leading to depreciation, particularly if the results fall short of expectations. This slowdown may also boost demand for government bonds, driving up their prices and reducing yields.