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The article discusses efforts by the Chinese national bank, known as the People's Bank of China (PBOC) to develop an electronic currency referred to as the e-yuan and the digital currency/electronic payment (DC/EP), and the potential implications for consumers, regional countries, and the U.S. The article also discusses China's financial technology industry.

The author discusses implementation of a central bank digital currency (CBDC) by China representing part of strategy to challenge U.S. dominance in global finance by investment into fintech innovation. Topics discussed include petro added by the U.S. to its sanction list making token an untouchable asset, smart contracts to be used by electronic Chinese yuan for programmable transactions, and e-CNY pilots statistics not published by the People's Bank.

China's central bank, the People's Bank of China (PBOC), has taken steps to curb the bond rally in the country by selling long-dated bonds and buying short-maturity securities. This move aims to manage financial stability risks and prevent a potential market meltdown if the influx of money into Chinese debt suddenly reverses. However, some market watchers believe that these actions contradict efforts to support the sluggish domestic economy. The PBOC's bond operations may not have the same long-term impact as those seen in the US or Japan, but they indicate a potential shift towards making government-bond trading a regular tool for managing liquidity. [Extracted from the article]

The Chinese currency, the yuan, has reached its highest level in over a year, benefiting from corporate buying and a weakening US dollar. The yuan has gained around 2% in August, erasing its losses for the year and is now up about 0.7% in 2024 against the dollar. This increase is due to rising expectations that the Federal Reserve will cut interest rates, prompting traders to sell the dollar and buy local currencies. However, the yuan still faces pressure from sluggish growth and the government's cautious approach to stimulus. [Extracted from the article]

China's central bank, the People's Bank of China (PBOC), has set the daily reference rate for the yuan in line with expectations, indicating its comfort with the currency's current level. The yuan has rebounded against the dollar in recent weeks due to expectations of Federal Reserve rate cuts and the unwinding of a crowded strategy involving borrowing the yuan cheaply and selling it against a higher-yielding currency. The PBOC's move suggests a reluctance to let the yuan strengthen too much. The need for further support for the Chinese economy has intensified as growth remains sluggish, and there are concerns about the impact of a stronger yuan on the nation's exporters. [Extracted from the article]

Traders are increasingly concerned about hedging against a rise in the Chinese yuan rather than a fall, according to Bloomberg. The premium for buying bearish put options in dollar-yuan over bullish calls has reached levels last seen in 2011, indicating that traders are willing to pay more to protect against gains in the Chinese currency. Recent factors such as a surge in the yen and the possibility of a PBOC interest rate cut have buoyed the yuan, but negative factors such as lower yields on Chinese government bonds continue to weigh on the currency. Factory survey data is expected to show a slowdown in July, and the central bank has weakened the daily reference rate for the yuan. [Extracted from the article]

Traders are becoming more concerned about hedging against a rise in the Chinese yuan rather than a fall, according to Bloomberg. The premium for buying bearish put options in dollar-yuan over bullish calls has reached levels last seen in 2011, indicating that traders are willing to pay more to protect against gains in the Chinese currency. Recent factors such as a surge in the yen and the Chinese central bank's opportunity to cut interest rates have boosted the yuan, but negative factors such as lower yields on government bonds continue to weigh on the currency. Analysts warn that sentiment has shifted to an "extreme" and there is a risk of a reversal. [Extracted from the article]

Chinese government bonds rose after the central bank cut a key policy rate, while Asian stocks, including Chinese stocks, fell due to weakness in the tech sector. The dollar slipped after Joe Biden ended his reelection campaign and endorsed Vice President Kamala Harris. Investors are now considering whether to stick with trades based on a potential Trump win, following Biden's decision to drop his bid for reelection. [Extracted from the article]

Chinese banks have reduced their main benchmark lending rate for the first time since August 2023, following a rate reduction by the People's Bank of China (PBOC). The one-year loan prime rate was lowered to 3.35% from 3.45%, while the five-year rate, which is used as a reference for mortgages, was reduced to 3.85% from 3.95%. This move comes after the PBOC's decision to trim a key short-term policy rate for the first time in almost a year, as economic growth in China has been weaker than expected. The PBOC has been focused on safeguarding the yuan exchange rate, but pressure on the currency is expected to persist until the US Federal Reserve eases policy. [Extracted from the article]

According to a Bloomberg survey of analysts and traders, China may be able to loosen its control over the yuan without causing a major disruption in the market. The survey of 24 financial institutions suggests that these respondents have confidence in the People's Bank of China's ability to manage the exchange rate, despite the pressure on the yuan. The majority of respondents believe that the PBOC will prioritize stability and prevent a sharp decline in the currency, even if the Federal Reserve delays an expected interest rate cut. While some participants think the market could handle a removal of yuan support, others anticipate a panic selloff that would prompt the reinstatement of support measures. The survey also highlights the risks posed by the re-election of Donald Trump as US president and Fed policy, but only a few participants expect China to respond to high tariffs with a yuan depreciation. The average year-end forecast for the yuan among survey respondents was 7.26 per dollar. [Extracted from the article]

China's central bank, the People's Bank of China (PBOC), has announced plans to sell government bonds in order to cool down a record-breaking rally in the bond market. The PBOC has signed agreements with major financial institutions to borrow "hundreds of billions" of yuan worth of medium- and long-term bonds, which it will sell depending on market conditions. The move comes as China's sovereign bonds have surged due to the country's economic outlook and expectations for interest rate cuts. The PBOC aims to prevent excessively low yields from endangering financial stability and weighing on the yuan. [Extracted from the article]

Traders in China are increasingly betting on further monetary easing this year as the country's weak economic recovery puts pressure on authorities to cut interest rates and provide liquidity. Chinese government bond yields are at their lowest in nearly four years, and banks can raise short-term debt more cheaply in money markets than from the central bank. Signs that the People's Bank of China is loosening its control over the yuan and recent reductions in deposit rates by major commercial lenders also support expectations of further policy easing. Economists are calling for rate cuts, with some predicting a cut as early as this month. The bond market has rallied, with trading volume reaching a record high in December. The receding pressure on the yuan and the expectation of a dovish Federal Reserve also provide room for the PBOC to increase its easing efforts. [Extracted from the article]

China has weakened its daily reference rate for the yuan for the sixth consecutive day, allowing the currency to be more flexible in response to the strength of the US dollar and a mixed economic recovery. The People's Bank of China set the fixing at 7.1248, compared to 7.1225 the previous day. This move is seen as creating room for the dollar-yuan exchange rate to increase. The central bank is managing a gradual decline in the yuan due to the strength of the US dollar, and some experts have called for more flexibility in the currency to provide room for monetary stimulus. [Extracted from the article]

China's central bank, the People's Bank of China (PBOC), has shown support for the yuan in an effort to manage its decline. The PBOC set the daily reference rate for the currency slightly weaker than the previous day, signaling its desire to control the decline. Chinese state-owned banks also increased support for the yuan by selling dollars in the onshore market. The yuan's decline is attributed to broad strength in the dollar and pessimism about the Chinese economy. The PBOC aims to maintain stability and prevent further losses, while also deterring markets from betting against the yuan. [Extracted from the article]

China's central bank, the People's Bank of China (PBOC), has increased its support for the yuan in an effort to manage its decline. The PBOC set the daily reference rate for the yuan at 7.1196 per dollar, the widest gap between the fixing and forecasts since April. The yuan has been falling to its lowest level since November due to the strength of the US dollar and concerns about the Chinese economy. While Beijing wants to gradually weaken the currency, it is also cautious about triggering capital outflows and prefers stability over rapid declines. [Extracted from the article]

China's central bank, the People's Bank of China (PBOC), has increased its support for the yuan in an effort to manage its decline. The PBOC set the daily reference rate for the yuan at 7.1196 per dollar, the widest gap between the fixing and forecasts since April. The yuan has been falling to its lowest levels since November due to the strength of the US dollar and concerns about the Chinese economy. The PBOC aims to maintain stability and prevent excessive declines in the yuan. [Extracted from the article]

Asian equities slipped as traders questioned the sustainability of a tech-driven rally that has pushed a key benchmark to a near two-year high. Japanese and Chinese stocks led the weakness in regional equities, with the MSCI Asia Pacific Index falling 0.4%. The offshore yuan also weakened to its lowest level this year. Despite this, MSCI's gauge of Asian stocks is still trading near its highest level since March 2022. [Extracted from the article]

Chinese banks have maintained their benchmark lending rates for the 10th consecutive month, as pressure on the yuan limits policymakers' ability to ease monetary policy. The one-year loan prime rate remains at 3.45%, while the five-year rate stands at 3.95%. The rates are based on the interest rates offered by 20 banks to their best customers. The People's Bank of China is keeping rates steady to avoid widening the policy divergence with the US Federal Reserve and to alleviate pressure on the yuan. However, weak borrowing demand and deflationary conditions may warrant lower borrowing costs to stimulate demand. [Extracted from the article]

China has set the yuan's daily reference rate at its weakest level since November, indicating a loosening of control over the currency. The move comes as the US dollar strengthens and traders anticipate higher interest rates in the US. Chinese banks have maintained their benchmark lending rate for the tenth consecutive month, as pressure on the yuan limits policymakers' ability to ease monetary policy. While the weaker fixing suggests a more relaxed approach to the yuan, experts do not expect significant depreciation of the currency. [Extracted from the article]

China's central bank, the People's Bank of China (PBOC), is studying the implementation of government bond trading with the finance ministry. The PBOC governor, Pan Gongsheng, emphasized the need to optimize the pace of sovereign bond sales and the debt's tenor structure. Pan clarified that including government bond buying and selling into the monetary policy toolbox does not equate to quantitative easing, but rather serves as a tool for injecting base money and regulating liquidity. The PBOC's potential participation in sovereign bond trading is expected to improve market liquidity. [Extracted from the article]

Foreign investors have increased their holdings of Chinese bonds to a record level, taking advantage of a market anomaly that allows for a premium when swapping dollars into yuan. Most of the purchases were in short-term bank debt, while government bonds saw outflows. Despite lingering geopolitical risks, a dollar shortage onshore and the US-China interest-rate divergence has created a market condition that gives higher currency-hedged yields for Chinese debt over US Treasuries. However, overseas investors still only account for 3% of outstanding interbank bonds, and future demand for Chinese bonds may vary among investors. [Extracted from the article]

The People's Bank of China (PBOC) is considering buying and selling government bonds as a tool to manage liquidity in the financial system. The PBOC may use this tool to cool an overheated bond rally or to improve liquidity management in the long term. However, there are concerns about the PBOC's ability to sell bonds due to its limited stockpile and the maturities of the bonds it holds. Some experts suggest that the PBOC may start by selling bonds before buying them. The central bank currently holds about 1.5 trillion yuan ($207 billion) of government debt. The PBOC may need to acquire more bonds in order to participate in the market. It is also possible that the PBOC may initiate a bond-lending arrangement. Overall, the trading of sovereign bonds is seen as an additional tool for the PBOC to manage liquidity. The central bank may wait for guidance from top officials before taking action. [Extracted from the article]

The recent flood of yuan offshore is causing disruptions in the forward market, leading to speculation that Chinese officials are allowing the currency to decline. The cost to borrow yuan versus the dollar has hit its lowest point this year, indicating that there is an abundance of Chinese currency available for traders to take short positions at a low cost. The People's Bank of China (PBOC) has been gradually allowing the yuan's daily reference rate to weaken over the past two months, potentially in an effort to boost the export-driven economy. There are various factors contributing to the increase in yuan in the offshore market, including increased foreign currency conversions by Chinese corporates and banks, as well as Chinese investor purchases of Hong Kong stocks. Some speculate that state banks may be using the offshore market to obtain dollars for shadow intervention. [Extracted from the article]

China's central bank, the People's Bank of China (PBOC), has explained President Xi Jinping's concept of a "powerful currency." According to Tao Ling, Deputy Governor of the PBOC, a strong currency should be stable domestically and have a "reasonable, equilibrium level" externally. It should also be easy, efficient, and safe to use, and widely accepted in international markets. The PBOC also plans to support China's technology sector and develop a financial system that aligns with the country's goal of becoming a technology powerhouse. The PBOC aims to increase the global use of the yuan by promoting hedging tools, China's payment and settlement system, and issuing panda bonds. The yuan's global use has been steadily increasing, reaching a record high of 4.7% in March. [Extracted from the article]

China's onshore yuan has reached its lowest level since November as the country allows the currency to decline against a strong US dollar. The People's Bank of China has been gradually reducing its daily reference rate for the yuan, indicating a shift in policy. The central bank is trying to find a balance between promoting growth and avoiding market panic or capital outflows. Other Asian currencies, such as the Japanese yen, Thai baht, and Indonesian rupiah, are also facing depreciation pressures due to their yield disadvantage compared to the US dollar. [Extracted from the article]

According to a Bloomberg analysis, China's yuan is expected to rebound in the next three months based on historical trends. Strategist Simon Flint found that when the yuan has approached the weak side of its trading band against the dollar, it has tended to strengthen in the following months. The analysis suggests that the central bank's patient approach of waiting for a shift in the dollar's fortune is the right strategy. The yuan, along with other regional currencies, is currently facing pressure due to expectations of higher interest rates in the US and concerns about China's economic growth. [Extracted from the article]

China has allowed its currency, the yuan, to weaken against the dollar due to an increase in capital outflows and a strong dollar. The People's Bank of China has adjusted its daily reference rate for the yuan, signaling a potential shift in its policy of supporting the currency. This move could have significant implications for the stability of the Chinese currency and its impact on regional economies. The PBOC is trying to find the right balance between yuan weakness for economic growth and avoiding market panic or capital outflows. [Extracted from the article]

China has weakened its daily reference rate for the yuan to the lowest level since January, indicating that policymakers are allowing gradual declines in the managed currency. This move is likely to give the currency more room to depreciate alongside other regional currencies. Chinese authorities have previously maintained a strong hold on the yuan, but some former officials have suggested that the nation should relax its control over the currency to allow for possible monetary stimulus. The People's Bank of China faces the challenge of finding the right pace of yuan weakness that promotes growth without causing market panic or capital outflows. [Extracted from the article]

Chinese banks have decided to keep their benchmark lending rates unchanged, following the People's Bank of China's decision to hold a key rate on loans to lenders. The one-year loan prime rate remains at 3.45%, while the five-year rate, which is used as a reference for mortgages, remains at 3.95%. China's economic recovery has been driven by the industrial sector, but domestic demand has remained weak due to a property downturn. Some economists expect the central bank to cut rates or inject more cash into the financial system in the coming months to support the economy. The government has also implemented measures to stimulate domestic demand, including aid for the property sector and the establishment of a program to provide cheap funding for state-owned companies to buy unsold homes. [Extracted from the article]

Hong Kong has officially launched a pilot program allowing residents to make digital yuan payments through major Chinese banks. This marks the first time that China's digital currency project has been deployed outside of mainland China. Hong Kong residents can now open digital yuan wallets with select banks and use them to pay merchants in mainland China. The wallets can be set up using a Hong Kong mobile phone number and can be topped up using the local instant payment system. The goal is to expand the use of the digital yuan and promote its acceptance by more retail merchants in both Hong Kong and China. [Extracted from the article]

Hong Kong has launched a pilot program allowing residents to make digital yuan payments through major Chinese banks, marking the first expansion of China's digital currency project beyond the mainland. Users can open digital yuan wallets with select banks and use them to pay merchants in mainland China. The wallets can be set up using a Hong Kong mobile phone number and can be topped up using the local instant payment system. This move is part of China's efforts to increase the global use of the yuan and comes as Hong Kong aims to develop a virtual-asset hub. [Extracted from the article]

China's central bank, the People's Bank of China (PBOC), has extended a key policy loan at the same borrowing cost, indicating its intention to support the country's economic recovery without putting pressure on the yuan. The PBOC offered 125 billion yuan ($17.3 billion) through its medium-term lending facility, matching the amount of loans maturing this month. The decision to maintain the loan rate and roll over the loans is due to stable liquidity, upcoming government bond issuance, stabilized economic data, and pressure on the yuan. The PBOC's cautious approach suggests a reliance on fiscal stimulus and reflects ample liquidity in China's financial system. Some economists expressed disappointment at the decision, calling for interest rate cuts to boost domestic demand. [Extracted from the article]

China's central bank, the People's Bank of China (PBOC), has extended a key policy loan at the same borrowing cost, indicating a desire to support the country's economic recovery without putting pressure on the yuan. The PBOC offered 125 billion yuan ($17.3 billion) through its medium-term lending facility, matching the amount of loans maturing this month. The central bank also kept the rate on the one-year policy tool steady at 2.5%. This decision reflects concerns about the potential weakening of the yuan and capital flight. The PBOC's caution suggests that Chinese leaders are relying more on fiscal stimulus to achieve their growth target of around 5% for this year. [Extracted from the article]

China's policy banks, including China Development Bank, are repaying funds to the People's Bank of China (PBOC) at a record pace and turning to bond sales for funding instead. In April, the policy banks repaid a net 343 billion yuan ($48 billion) of funds under the PBOC's Pledged Supplemental Lending program, the largest repayment since 2015. At the same time, bond sales by the policy banks reached 364.7 billion yuan, the highest level in nearly two decades. This shift in funding has mixed consequences for policymakers, as it allows the policy banks more freedom in deploying cash raised from bonds but could also contribute to efforts to stem the bond market rally. The policy banks are state-owned lenders that prioritize government objectives over profit. Yields on bonds issued by China Development Bank have declined to 2.15%, below the interest rate on PSL loans, making bond financing more attractive for the policy banks. The surge in bond supply could potentially impact the bond market rally, and the PBOC may encourage policy banks to issue more securities to achieve that. The PBOC's PSL funds have been used to support major projects, including government-subsidized housing and urban village renovations. However, the contraction in PSL credit to the policy banks does not necessarily mean a withdrawal of support for these projects, as Beijing can still tap into other resources. [Extracted from the article]

Chinese companies are set to pay out a record-breaking 573.1 billion yuan ($79.2 billion) in dividends to overseas investors this year, which is likely to put further pressure on the already weakened yuan. The payments, which will peak between June and August, involve converting yuan into foreign currencies for payment, undermining efforts by the People's Bank of China to stabilize the currency. The weakening yuan is attributed to factors such as broad dollar strength, widening US-China yield gaps, and signs that the PBOC may reduce its resistance to yuan depreciation. Chinese policymakers may find it difficult to take measures to lessen the impact of dividends on the yuan, as some investors rely on dividend payouts as a key source of returns. [Extracted from the article]

The People's Bank of China (PBOC) has expressed concerns about the rally in long-term government bonds, suggesting that there may be a correction due to a mismatch between market prices and the economic outlook. This warning caused a selloff in government bonds, with futures on China's 30-year debt experiencing the worst loss since their debut a year ago. The PBOC has been taking measures to cool the rally, but yields remain on track to test record lows. Investors have been flocking to bonds due to factors such as China's dovish monetary policy and a shortfall in debt supply. However, there are concerns that the situation may backfire on bond bulls, and the PBOC has warned investors to be aware of interest rate risks. The report also clarified that the PBOC's buying and selling of government bonds is different from quantitative easing operations conducted by other central banks. [Extracted from the article]

The People's Bank of China (PBOC) has expressed concerns about the ongoing rally in long-term government bonds, suggesting that there may be a correction in the future to align market prices with the economic outlook. Despite the temporary deviation between the two, driven by supply and demand, the PBOC remains optimistic about China's long-term growth prospects. Regulators have taken measures to cool the bond rally, but yields continue to approach record lows. The PBOC has also warned investors about interest rate risks and advised against locking large amounts of funds into long-duration bonds at excessively low yield levels. Additionally, the report clarified that the PBOC's bond trading in the secondary market is different from quantitative easing operations conducted by other central banks. [Extracted from the article]

China's Ministry of Finance has expressed support for allowing the central bank, the People's Bank of China (PBOC), to trade government bonds. This statement follows President Xi Jinping's comment that the PBOC should gradually increase its buying and selling of government bonds. While some initially interpreted this as a signal of quantitative easing, most experts believe it is intended to provide the PBOC with an additional tool to inject liquidity into the markets and stabilize interest rates. The ministry's comments come at a time when there is increased focus on China's borrowing plans, with the government planning to sell 1 trillion yuan ($138 billion) of special sovereign bonds this year. The issuance date has not been specified, and the slow rollout of bond sales has raised concerns among investors about the level of stimulus being provided by the government. [Extracted from the article]

China's central bank governor, Pan Gongsheng, has downplayed concerns about deflation and a weakening yuan, emphasizing that the country's strong economic performance in the first quarter puts it on track to achieve its 5% growth target for the year. Pan stated that the yuan exchange rate has been stable and that consumer prices have remained generally stable, with core inflation slightly higher. He also addressed concerns about local government debt, highlighting improvements in debt settlement and a decline in off-budget debts. Pan called for a realignment of quota shares in the International Monetary Fund to better represent emerging markets and urged private creditors to support low-income countries struggling with debt. [Extracted from the article]

The Chinese yuan's strength against other major currencies in China's trading orbit is at odds with China's struggling economy and threatens the competitiveness of its exports. The People's Bank of China (PBOC) has recently taken steps to weaken the yuan's reference rate, indicating a shift towards allowing for more currency flexibility. However, this strategy risks fueling capital outflows and undermining consumer confidence. The PBOC has the ability to engineer a gradual depreciation of the yuan, but setting a firm line for the currency's value may have negative consequences. [Extracted from the article]

China's central bank, the People's Bank of China (PBOC), has emphasized the need to prevent one-sided moves in the yuan and maintain its stability. The PBOC aims to avoid excessive volatility and will take action when traders place lopsided bets. The Chinese currency recently weakened due to concerns about the US not rushing to cut interest rates and the challenges faced by China's economy. The PBOC's statement reflects its concern about wild swings in the yuan that could threaten financial stability. China intends to determine its exchange rate based on supply and demand, keeping it broadly stable. [Extracted from the article]

China has withdrawn cash from its banking system for the second consecutive month, indicating caution towards monetary easing as concerns about currency depreciation mount. The People's Bank of China drained a net 70 billion yuan ($9.7 billion) of cash through its medium-term lending facility, while keeping the interest rate on its one-year policy loans at 2.5%. This move comes despite inflation stalling last month and calls for more stimulus. The Chinese authorities are facing challenges in managing economic risks and dealing with policy divergence from the US, where rate-cut expectations are being pushed back due to sticky inflation. [Extracted from the article]

China has shown its support for the yuan by setting its daily reference rate for the currency within its recent range, despite the dollar's strength. The gap between the fixing and forecasts was the widest on record, indicating policymakers' desire for stability. China is cautious of yuan pressure, as rapid drops can lead to capital outflows and further losses. The PBOC also sold dollars to support the yuan and tightened offshore liquidity. The Chinese economy could benefit from rate cuts, but the need for currency stability may limit this in the near term. [Extracted from the article]

China is working to maintain the stability of the yuan despite pressure from a strong dollar and negative investor sentiment. The People's Bank of China has kept the daily reference rate for the yuan relatively unchanged, signaling the importance of stability. While a weaker yuan could benefit China's export industry, policymakers are concerned about the potential negative impact on local stocks and bonds. The recent strength of the dollar and doubts about China's economic growth have made it more challenging for the central bank to stabilize the yuan. If the yuan approaches the lower end of its trading range, investors may experience trading disruptions. [Extracted from the article]

Asian stocks followed gains on Wall Street after better-than-expected US payrolls data. Oil prices fell as Israel announced it would withdraw some troops from Gaza. The People's Bank of China kept the yuan's reference rate stable in an effort to stabilize the currency. Traders are monitoring geopolitical tensions in the Middle East, while the focus will soon shift to US March inflation data. Stock bulls are hedging their exposures as questions arise about the extent of the rally. The New Zealand central bank is expected to push back against easing bets, while the European Central Bank is likely to keep its key rate unchanged. Gold prices declined after reaching record highs. [Extracted from the article]

Traders are closely watching China's daily yuan reference rate to see if there will be any official response after the currency weakened last week. The fixing, which sets the daily reference rate against the dollar, may indicate whether Beijing will support the currency more strongly or allow it to depreciate moderately. China's policymakers are concerned about currency pressure affecting local stocks and bonds, but a weaker yuan would benefit the country's export engine. Resilient US economic data and expectations of fewer rate cuts by the Federal Reserve are also weighing on the yuan. [Extracted from the article]

China's defense of its currency, the yuan, is approaching a critical point that may lead to a stronger response from authorities to punish short-sellers. The People's Bank of China (PBOC) has historically intervened aggressively to stabilize the yuan whenever it nears its fixed range against the dollar. The PBOC faces the challenge of maintaining loose policy to stimulate growth while also keeping the currency strong to prevent capital outflows. The recent strength of the dollar has made this task even more difficult. Analysts believe that the PBOC will closely manage the yuan to prevent it from reaching its trading band, and there is currently no sign of a panic selloff. However, if the dollar continues to strengthen, action from Beijing cannot be ruled out. [Extracted from the article]

China's defense of its currency, the yuan, is approaching a critical point that may lead to a stronger response from authorities to punish short-sellers. The People's Bank of China (PBOC) has historically intervened aggressively to stabilize the yuan whenever it nears its fixed trading range against the dollar. The PBOC faces the challenge of maintaining loose policy to stimulate growth while keeping the currency strong enough to prevent capital outflows. The recent strength of the dollar has made the PBOC's task even more difficult. Analysts believe that the PBOC will closely manage the yuan to prevent it from reaching the trading band, and there is currently no sign of a panic selloff. [Extracted from the article]