David Shairp: Renminbi weakness turns short-term focus to stability

Resumed 2015 trend depreciation

clock • 2 min read

During an investment meeting last week, a question was raised about the Chinese renminbi (RMB) and whether it was set to weaken significantly once more, writes David Shairp, head of investment research at Prudential Portfolio Management Group.

In trade-weighted terms, the currency has started to weaken again, as the RMB has depreciated along with the softer US dollar against other currencies. Indeed, the trade-weighted RMB has moved in line with the USD trade-weighted index, which strengthened from August to December 2016, before weakening again from the start of this year. In short, it looks as if the RMB has resumed the trend depreciation that started in late-2015. Our sense in recent months is that the focus of Chinese policy has shifted away from seeking to support the economy towards maintaining stability and trying...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Asia

EFG's Afzal and Gerlach: A letter from Hong Kong

EFG's Afzal and Gerlach: A letter from Hong Kong

On a recent visit to Hong Kong and Singapore we took the opportunity to meet with market strategists as well as private and public sector economists to better understand the economic problems China is facing given economic sentiment is in the doldrums....

Moz Afzal and Stefan Gerlach
clock 28 March 2024 • 4 min read
Aviva Investors' Wakefield: Is Japan's stock-market sugar rush sustainable?

Aviva Investors' Wakefield: Is Japan's stock-market sugar rush sustainable?

New regulations to 'improve competitiveness'

Baylee Wakefield
clock 14 March 2024 • 4 min read
 abrdn's Yeo and Kwik: Will the dragon soar in 2024 for China?

abrdn's Yeo and Kwik: Will the dragon soar in 2024 for China?

'Cause to be optimistic'

Elizabeth Kwik and Nicholas Yeo
clock 09 February 2024 • 4 min read
Trustpilot