Yuan to remain under pressure for longer

169

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.