24 Mar 2014
Yuan strengthens as PBoC sets rate lower - BTMU
FXStreet (Barcelona) - Lee Hardman, FX Analyst at the Bank of Tokyo Mitsubishi UFJ notes that the Chinese yuan has strengthened by the most in over week overnight after the PBoC set the daily fix marginally lower at 6.1452.
Key Quotes
"Investor concerns over slowing economic growth in China have been reinforced further by the release of the weaker than expected HSBC China manufacturing PMI survey for March."
"The survey revealed that business confidence in the Chinese manufacturing sector declined for the fifth consecutive month to 48.1 in February reaching its lowest level since July of last year. Weakness was mainly reflected in domestic demand with both the new orders and output sub-components declining by 1.7 and 1.5 percentage points respectively."
"In contrast, the new export orders and employment sub-components increased by 2.8 and 2.2 percentage points respectively. The survey provides a further signal that real GDP growth in China has likely slowed materially in Q1 which is encouraging building investor expectations that the Chinese authorities will loosen policy to support growth which could include a mini stimulus package similar to last year. The China Securities Journal has also reported comments from a researcher at the National Development and Reform Commission stating that the Chinese economy may grow by around 7% in 2014."
Key Quotes
"Investor concerns over slowing economic growth in China have been reinforced further by the release of the weaker than expected HSBC China manufacturing PMI survey for March."
"The survey revealed that business confidence in the Chinese manufacturing sector declined for the fifth consecutive month to 48.1 in February reaching its lowest level since July of last year. Weakness was mainly reflected in domestic demand with both the new orders and output sub-components declining by 1.7 and 1.5 percentage points respectively."
"In contrast, the new export orders and employment sub-components increased by 2.8 and 2.2 percentage points respectively. The survey provides a further signal that real GDP growth in China has likely slowed materially in Q1 which is encouraging building investor expectations that the Chinese authorities will loosen policy to support growth which could include a mini stimulus package similar to last year. The China Securities Journal has also reported comments from a researcher at the National Development and Reform Commission stating that the Chinese economy may grow by around 7% in 2014."