Goldman Sachs(US:GS) news flash·2025-05-26 07:46Core Viewpoint - Goldman Sachs' chief China equity strategist Liu Jinjun and his team report that the Chinese yuan has appreciated approximately 1% since April 2, driven by several factors including stable central bank policies, improved export competitiveness, potential undervaluation of the yuan's real effective exchange rate, a general weakening of the US dollar, and increased demand for diversified asset investments [1] Group 1 - The central bank has maintained a stable yuan-to-dollar midpoint, contributing to the currency's appreciation [1] - China's export competitiveness has improved compared to 2017, supporting the yuan's strength [1] - There is a belief that the yuan's real effective exchange rate may be undervalued, which could provide further support for the currency [1] Group 2 - The overall weakening of the US dollar has created a favorable environment for the yuan [1] - Increased demand for diversified investments has been noted, which may lead to more foreign capital inflows into the Chinese stock market [1] - The potential resilience of the yuan supports a positive outlook for Chinese equities, with expectations of moderate improvement in corporate earnings [1]