Offshore yuan rebounds post-holiday

The offshore yuan strengthened to around 7.13 per dollar on Thursday, rebounding from the previous session as Chinese investors returned after the extended “Super Golden Week” holiday.

The weeklong break, which combined National Day and Mid-Autumn Festival celebrations, underscored resilient consumer spending and continued economic recovery momentum.

Official data indicated record travel activity, with an estimated 2.43 billion cross-regional passenger trips made—averaging 304 million journeys per day—reflecting strong demand across transport, tourism, and retail sectors.

Domestic consumption, particularly in leisure and services, continued to expand, reinforcing Beijing’s strategy to transition toward higher-quality, consumption-driven growth.

On the trade and industrial policy front, authorities intensified control over the country’s strategic resources by broadening export restrictions on rare earths. The new regulations tighten oversight on processing technologies and prohibit unauthorized overseas cooperation, part of China’s broader effort to safeguard its dominance in critical minerals essential for high-tech manufacturing and defense applications.

The updated rules explicitly state that export licenses will likely be denied to defense contractors and semiconductor producers deemed sensitive or linked to foreign military use. In addition, Chinese firms are now barred from engaging in rare earth exploration or processing abroad without official approval, signaling an increasingly security-focused approach to supply-chain management.

Globally, the move has raised fresh concerns over supply risks for advanced manufacturing sectors in the US, EU, and Japan, which rely heavily on Chinese rare earth exports.

Analysts noted that the measures could add upward pressure on prices of key materials used in electric vehicles, wind turbines, and electronic components, while potentially accelerating Western efforts to diversify critical mineral supply chains.