Retail sales grew 3.1% year on year in June (May: -6.7% yoy).

Industrial production rose 3.9% year on year in June (May: +0.7% yoy). China: Industrial output growth picks up pace in June.GDP growth waned to 0.4% year on year in the second quarter, from 4.8% in the first quarter. China: Economy records weakest growth reading since Q1 2020 in Q2.House prices in 70 large- and medium-sized cities were unchanged month-on-month in June, according to a weighted average index calculated by Refinitiv from data issued by the National Bureau of Statistics (NBS), following May’s 0.1% decrease. China: House prices remains broadly unchanged in June.For 2019, the panel projects that the CNY will trade at 6.62 per USD. Also, the PBOC initiative to set a reserve requirement of 20% on commercial banks’ purchase of foreign-exchange forwards supported the yuan.įocusEconomics Consensus Forecast panelists expect the Chinese yuan to trade at 6.72 per USD at the end of 2018. Furthermore, the yuan benefited from the PBOC decision to set its daily reference rates stronger in mid-August, preventing the yuan from declining further as the currency fluctuates by 2% around the daily fixing. will resume trade talks in late August halted the depreciation of the yuan in recent days. Nevertheless, news that China and the U.S. Moreover, some analysts are speculating whether Chinese authorities are allowing the yuan to weaken to bolster the external sector in a context of subdued inflationary pressures and rising trade protectionism. Monetary tightening in the United States is also spurring capital outflows from emerging markets, adding further pressure on the yuan. and cooling economic growth due to the government’s campaign to curb shadow banking and support financial deleveraging. The slide of the yuan mostly reflects escalating trade tensions with the U.S. While the yuan has lost a relatively moderate 3.0% against the greenback compared to the same day last year, it has weakened 9.6% since April. On 17 August, the yuan closed the day at 6.88 CNY per USD, which represented a weakening of 2.6% over the same day of the previous month. Measures implemented by the People’s Bank of China (PBOC) and trade talks between China and the United States scheduled for late August tamed the sharp depreciation of the yuan that started in April and accelerated in June. China - Exchange Rate Central Bank intervention and upcoming trade talks halt the yuan’s slide

Chinese currency exchange rates