📝PBoC May Hold More Patience to Yuan Depreciation: HSBC

The CFETS index has remained stable at around 102, suggesting

the CNY’s depreciation against the USD recently has been

generally in line with the movement of other major currencies. Chinese stocks have shown more resilience recently as net

equity inflows of $538m so far in August, compared to a monthly

average of net $2.8b equity outflows in the first seven months. Trade weighted yuan and equities show resiliency, points to no urgency from the PBoC to act as it has done several years ago.

- HSBC Strategy