RBC projects the USD/CNY exchange rate to rise to 7.55 by year-end.
Analysts at the bank cite:
- weak economic prospects for China, the economy remains burdened by the real estate slump and sluggish consumer spending, with no clear resolution in sight for these issues
- the likelihood of another US-China trade war following Trump's win
- yield gap between US and Chinese 10-year bonds will widen, as the People’s Bank of China is likely to adopt looser monetary policies, while the Federal Reserve may slow its rate cuts
***
Shanghai Composite update, a soft start to 2025:
