Global EditionASIA 中文雙語Fran?ais
    Business
    Home / Business / Finance

    Equities may shake off yuan depreciation

    By Cai Xiao | China Daily | Updated: 2018-07-09 07:18
    Share
    Share - WeChat
    A prudent and neutral monetary policy balances growth and risk prevention. [Photo/VCG]

    Recovery appears possible as currency seen stabilizing at a reasonable level to the US dollar

    Although a depreciating yuan has taken a toll on the Chinese A-share market over the past two weeks, a recovery appears possible as the local currency is expected to stabilize at a reasonable level to the US dollar soon, market insiders said.

    The central parity rate of the renminbi weakened 340 basis points to 6.6497 against the dollar on Tuesday, hitting a new low since August 25, 2017. The currency closed at 6.6336 on Friday.

    "The A-share market slump in the last two weeks was related to the fluctuating foreign exchange market," said Li Xunlei, chief economist of Zhongtai Securities.

    The China-US trade tensions and the nation's deleveraging moves could have also affected the stock-market sentiment, Li said.

    "Many investors might interpret the falling yuan as a sign of an economic downturn or decreasing trade surplus," said Li.

    Last week, the benchmark Shanghai Composite Index fell by 3.52 percent to 2747.23 points. Prior to that, in seven trading days to Tuesday, the index fell 3.56 percent.

    The Shenzhen Component Index closed last week 4.99 percent lower at 8911.34 points, while the ChiNext Index, which tracks China's growth enterprises board, fell by 4.07 percent to 1541.31 points.

    Stocks of real estate firms tumbled 3.9 percent in the seven trading days to Tuesday as a weakening yuan raised fears of capital outflows that could weigh on asset prices.

    Airline shares also plunged 10.3 percent during the period on concerns a weakening yuan could bode ill for those companies (as they have dollar-denominated debts to repay) and push up their fuel costs as well.

    Li said the domestic stock market will recover soon as China's economic fundamentals are better than in 2015 and 2016. Also, the nation's ongoing deleveraging efforts have achieved good results; and the economy is steady and improving.

    "With higher economic quality, increasing foreign exchange reserves and reasonable inflation level, the yuan is expected to be stable at a reasonable level between 6.5 and 7 (to the dollar)," said Li.

    Yi Gang, governor of the People's Bank of China, said on Tuesday that recent fluctuations in China's foreign exchange market were largely due to a stronger US dollar and external uncertainties.

    "International payments were stable, and cross-border capital flows were roughly balanced," Yi said in a statement published on the PBOC's website.

    "China will continue to implement prudent and neutral monetary policy to keep the yuan basically stable at a reasonable level."

    The central bank's Deputy Governor Pan Gongsheng also said on Tuesday in Hong Kong that China has ample foreign reserves and foreign exchange tools. China is confident of keeping the yuan stable in a reasonable range.

    Dong Dengxin, a finance professor at the Wuhan University of Science and Technology, said the positive remarks of China's central bank governors should shore up investor confidence-more so because China's A shares appear to have bottomed out.

    "The current valuation of the A-share market is at a relatively low level, so it's a good time for medium- and long-term investments," said Dong.

    Top
    BACK TO THE TOP
    English
    Copyright 1995 - . All rights reserved. The content (including but not limited to text, photo, multimedia information, etc) published in this site belongs to China Daily Information Co (CDIC). Without written authorization from CDIC, such content shall not be republished or used in any form. Note: Browsers with 1024*768 or higher resolution are suggested for this site.
    License for publishing multimedia online 0108263

    Registration Number: 130349
    FOLLOW US
    CLOSE
     
    久久人妻少妇嫩草AV无码专区 | 日本乱偷人妻中文字幕在线| 日韩人妻精品无码一区二区三区 | 久久久久久国产精品无码超碰| 亚洲日本va中文字幕久久| 手机永久无码国产AV毛片| 中文字幕在线最新在线不卡| 精品国产毛片一区二区无码| 亚洲日韩乱码中文无码蜜桃臀网站| 亚洲中文字幕久久精品无码喷水| 久久无码人妻一区二区三区午夜 | 亚洲天堂中文字幕| 日产无码1区2区在线观看| 亚洲av无码专区国产乱码在线观看 | 亚洲色中文字幕无码AV| 久久午夜无码鲁丝片午夜精品| 亚洲AV无码国产在丝袜线观看| 久久精品中文字幕有码| 一本无码中文字幕在线观| 佐藤遥希在线播放一二区| 国产爆乳无码视频在线观看| 亚洲AV无码成人精品区天堂| 久久久久亚洲AV无码专区首JN | 国产成A人亚洲精V品无码性色| 亚洲AV无码第一区二区三区| 波多野结衣AV无码久久一区| 中文字幕性| 中文字幕在线看日本大片| 日本中文字幕免费看| 在线免费中文字幕| 中文字幕手机在线视频| 日本中文字幕一区二区有码在线| 最近中文字幕在线中文视频| 亚洲国产成人精品无码久久久久久综合| 国产精品亚洲а∨无码播放| 无码国产69精品久久久久网站| 亚洲国产成人精品无码区在线观看| 久久无码中文字幕东京热| 亚洲韩国精品无码一区二区三区| 无码AV动漫精品一区二区免费 | 成人无码a级毛片免费|