Yuan 'sweet spot' over - look for accelerated capital outflows – Goldman Sachs

Analysts at Goldman Sachs/Gao Hua Securities noted via Bloomberg this Monday, the depreciation in the yuan basket, renewed capital flows are likely to emerge from China.

Key Points:

The US poised to raise interest rates

Building pressure within China to ease monetary policy further

There are more pressures for China's foreign reserves to drop further

But as the yuan basket has fallen meaningfully this year and the exchange rate is closer to its fair level, the downward pressures won't be as significant as last year

Beijing’s Gao Hua Securities Company Limited is a subsidiary of Goldman Sachs.