China state planner spokesperson:
We are aware that household consumption capability and confidence needs to be improvedWe are aware companies’ competition has intensifiedWill study further increasing support from central govt to reduce funding pressure for local govts for people’s livelihood projectsWill investigate dumping cases, misleading promotions, improve governance of ‘disorderly competition’
China is trying to boost domestic demand. One of the steps it appears to be taking is to raise the value of the yuan. This would encourage, at the margin, the consumption of imprted goods and services, for example.
Over the course of this month the Bank has raised the CNY mid-rate by 0.65%, the biggest shift since September 2024.
This article was written by Eamonn Sheridan at investinglive.com.