Chinese companies are betting on further yuan weakness

In recent weeks it has appeared the worst is over for the yuan, which has been under pressure since its surprise August devaluation.

October data showed China had reversed five months of currency outflows, while there was also better news on China’s hopes for the yuan’s USDCNY, -0.0861%   inclusion by the IMF as one its special drawing right reserve currencies, helping it on its way to being a reserve currency. This looks increasingly likely after positive comments by IMF Managing Director Christine Lagarde.

Yet there remain various question marks over whether the yuan has really turned a corner after its summer wobbles. There is scant evidence the economy has, and much more of concerted intervention by the People’s Bank of China to support the currency, including in offshore markets.

For Free Signals and other KLSE online updates, click here OR Give A Missed Call : +60350219047 Follow Us On Twitter : www.twitter.com/epicresearchmy Like Us On Facebook : www.facebook.com/EpicResearchMalaysia Need Any Assistance Feel Free To Mail Us at : info@epicresearch.my