BEIJING - China’s banking and insurance regulator said on Saturday it did not expect a persistent decline in the yuan and warned speculative short sellers they would suffer “heavy losses” if they bet against the currency.
“Short-term fluctuation of the yuan exchange rate is normal, but in the long-run, China’s economic fundamentals determine that the yuan will not depreciate persistently,” Xiao Yuanqi, the spokesman for the China Banking and Insurance Regulatory Commission , told a finance forum in Beijing.Xiao was reading from a script prepared for Guo Shuqing, CBIRC’s chairman and the Communist Party chief of the People’s Bank of China .
Xiao also said Beijing must look out for hot money moving in and out of the country, as well as large amounts of capital flowing into the frothy real estate market. Washington slapped higher tariffs on $200 billion in Chinese goods earlier in May, prompting Beijing to retaliate. Besides China’s vast consumer market, he also cited U.S. importers’ willingness to share additional costs, and Beijing’s Belt and Road initiative that helps promote trade and investment with the rest of Asia, Europe and beyond as factors that would help cushion any negative shocks.
Xiao said China was not surprised at such moves, but stressed they would not prevent China from pursuing its own development while some U.S. tech firms are set to suffer lower revenues from such restrictive state policies.
China: Now stealing IP from Turkey
sunchartist Rhetoric level....... High
OOF
What they can do is start selling USA bonds and buy back yuans. That will slow the inflation in China and will increase borrowing cost for USA.
lKK
I don't know much about China but, can 'yuan bears' handle heavy losses?😉
sunchartist China's top banking regulator should have drinks with Elon Musk. They can bash the short-sellers together.
Really?
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