Yuan to remain under pressure for longer

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Most policy measures will focus on the supply side.

Markets and businesses should adapt to the “new normal”, in which the Chinese government will refrain from rolling out large-scale stimulus policies. Instead, China will implement targeted stimulus policies, and most policy measures will focus on the supply side.

We may see only a modest boost from policy stimulus in the coming months. Therefore, the RMB will continue to be under pressure for a long time.