Group 1 - The offshore RMB against the US dollar broke the 7.10 mark for the first time since November last year on September 17 [1] - The onshore RMB closed at 7.1163 against the US dollar on September 16, up 65 basis points from the previous trading day, marking the highest closing price since November 6 of last year [4] - Hong Kong is positioned as the largest offshore RMB business hub globally, with plans to enhance market liquidity and global reach through new funding arrangements [4] Group 2 - The US Consumer Price Index (CPI) for August increased by 0.4% month-on-month, with a year-on-year increase of 2.9%, indicating stable inflation [4] - Initial jobless claims in the US rose by 27,000 to 263,000, the highest level since October 2021, leading to increased expectations for interest rate cuts by the Federal Reserve [5] - Economists predict that the RMB will continue to appreciate against the US dollar due to several factors, including expectations of US rate cuts and ongoing support from China's exports [5][6] Group 3 - The RMB is expected to potentially break the 7 mark against the US dollar, influenced by changes in US Federal Reserve policies and cross-border capital flows [6] - The recent appreciation of the RMB is attributed to the approaching Fed rate cuts and increased foreign capital inflows into China's capital markets [6]

Core Viewpoint - The offshore RMB has appreciated against the USD, breaking the 7.10 mark for the first time since November last year, driven by expectations of US interest rate cuts and strong support from China's exports to various markets [2][3]. Group 1: RMB Exchange Rate Movement - On September 17, the offshore RMB/USD exchange rate reached a high of 7.0995, while the onshore rate closed at 7.1163, marking a significant increase [2]. - The RMB has shown notable volatility, initially depreciating at the beginning of the year but appreciating significantly since April, nearing the critical "7" level [2]. Group 2: Factors Driving RMB Appreciation - The appreciation of the RMB is attributed to three main factors: short-term expectations of US interest rate cuts, medium-term support from exports to the EU, ASEAN, Africa, and other emerging markets, and long-term economic stabilization policies in China [2]. - The expectation of a rate cut by the Federal Reserve has led to a decline in the USD index, providing upward momentum for non-USD currencies, including the RMB [3]. Group 3: Economic Implications - The appreciation of the RMB is seen as beneficial for domestic demand and investment, while it poses challenges for exporters who may need to establish technological barriers to reduce reliance on low prices [3]. - China's economic recovery and structural transformation are expected to support the RMB's strength, with policies aimed at boosting domestic demand further enhancing this trend [5]. Group 4: Future Outlook - Market expectations indicate a high probability of a 25 basis point rate cut by the Federal Reserve in September, with potential for additional cuts by the end of the year [4]. - Analysts predict that the RMB/USD exchange rate may continue to appreciate, with key indicators being the movements of US interest rates and cross-border capital flows [4].

Core Viewpoint - The offshore RMB has appreciated against the USD, breaking the 7.10 mark for the first time since November last year, driven by expectations of interest rate cuts by the Federal Reserve and strong support from China's exports to various markets [1][5][6]. Group 1: RMB Exchange Rate Movements - On September 17, the offshore RMB/USD exchange rate reached a high of 7.0995, while the onshore rate closed at 7.1163, marking a significant increase of 65 points from the previous day [1]. - As of September 17, the offshore RMB was quoted at 7.1036 and the onshore at 7.1079 [1]. - The RMB has shown notable volatility, depreciating earlier in the year but appreciating significantly since April, nearing the critical "7" level [3]. Group 2: Factors Driving RMB Appreciation - The appreciation of the RMB is attributed to three main factors: short-term expectations of interest rate cuts in the US, medium-term support from exports to the EU, ASEAN, Africa, and other emerging markets, and long-term economic stabilization policies in China [5]. - The key driver for the recent RMB appreciation is the market's anticipation of the Federal Reserve's interest rate cuts, which has led to a decline in the USD index and provided upward momentum for non-USD currencies, including the RMB [6]. Group 3: Future Outlook for RMB - Analysts predict that the RMB will continue to appreciate against the USD in the short to medium term, with potential to break the "7" level [8]. - Key indicators for future RMB movements include changes in the Federal Reserve's interest rates and the flow of cross-border capital in China [8]. - Historical trends suggest that there is no definitive pattern for RMB exchange rate movements following Fed rate cuts, but the overall economic recovery in China and strong demand from emerging markets are expected to support the RMB [9].

Economic Activity - The China High-Frequency Economic Activity Index (YHEI) as of September 9, 2025, is 0.98, a decrease of 0.06 from September 2 [1][3] - Key industrial indicators such as the "coastal coal freight index" and "import dry bulk freight index" have declined, with the coastal coal freight index at 0.71, the lowest since June [1][3] Price Indices - The Consumer Price Index (CPI) in August fell by 0.4% year-on-year, with core CPI rising by 0.9%, an increase of 0.1 percentage points from the previous month [42] - Food prices saw a significant decline, with fresh vegetable and pork prices dropping by 15.2% and 16.1% year-on-year, respectively [42] - The Producer Price Index (PPI) decreased by 2.9% year-on-year, with the decline in production material prices narrowing to 3.2% [42][2] Monetary Policy - As of September 9, 2025, the central bank net withdrew 948.8 billion yuan through open market operations, with a reverse repurchase rate of 1.4% [5][6] Interest Rates - The overnight interbank rate rose by 12 basis points to 1.48%, while the seven-day repo rate increased by 3 basis points to 1.49% [9][10] - The yields on 1-year, 5-year, and 10-year government bonds increased by 3.46, 1.35, and 4.74 basis points, respectively [14] Industrial Sector - As of September 9, 2025, steel billet prices increased by 1.69% week-on-week, while cement prices decreased by 1.01% [23][24] - The operating rate of short-process steel mills remained stable at 69.79%, while long-process steel mills saw a decline to 50.00% [23] Shipping Sector - The China Coastal Bulk Freight Index fell by 59.07 points to 994.29 points, while the Baltic Dry Index rose by 93 points to 2079 points [31] Real Estate Market - In the week ending September 9, 2025, new and second-hand home transaction areas in first-tier cities decreased by 24.64% and 4.17%, respectively [35][36] Global Economic Indicators - The US dollar index decreased by 0.54 points to 97.77, while the RMB appreciated by 228 basis points to 7.1248 against the dollar [44][45]

Group 1 - The central bank of China set the RMB to USD midpoint rate at 7.1029, an increase of 35 basis points, marking the highest appreciation since November 6, 2024 [2] Group 2 - The probability of the Federal Reserve lowering interest rates by 25 basis points in September is 92%, with a 0% chance of maintaining current rates [4] - The likelihood of a cumulative 25 basis point rate cut in October is 21.2%, while the probability of a cumulative 50 basis point cut is 72.6% [4] - There is a 6.2% chance of a cumulative 75 basis point cut by the Federal Reserve [4]

Group 1 - The central bank's exchange rate policy remains consistent, emphasizing the decisive role of the market in exchange rate formation and adhering to bottom-line thinking [3] - The market is optimistic about the appreciation of the RMB against the USD by the end of the year, as indicated by the performance of forward prices [3] - The current spot price of the RMB against the USD has shown a strengthening trend since August [3] Group 2 - The probability of the Federal Reserve maintaining interest rates in September is 12.6%, while the probability of a 25 basis point rate cut is 87.4% [2] - For October, the probability of the Federal Reserve keeping rates unchanged is 5.6%, with cumulative probabilities for a 25 basis point cut at 45.8% and a 50 basis point cut at 48.6% [2] Group 3 - The RMB/USD central parity rate was reported at 7.1072, reflecting a decrease of 42 points [1]

Core Viewpoint - The Chinese yuan has strengthened against the US dollar, with a notable increase of 0.84% in August, marking the largest rise in three months, driven by a weaker dollar and a strong A-share market [1][2][3]. Exchange Rate Movement - As of August 29, the onshore yuan reached a nearly ten-month high at 7.133 against the dollar, while the offshore yuan briefly surpassed 7.12 [1][2]. - The People's Bank of China set the yuan's central parity rate at 7.103, a rise of 33 points from the previous day, indicating the strongest adjustment in nearly a year [1][7]. Factors Influencing Yuan Strength - External factors include a weak US job market, which has increased expectations for Federal Reserve rate cuts, leading to a decline in the dollar index [3][4]. - Internal factors involve narrowing interest rate differentials between China and the US, along with supportive government policies for the tech sector, which have boosted the A-share market [4][5]. A-Share Market Performance - In August, the Shanghai Composite Index rose by 7.97%, the Shenzhen Component by 15.32%, and the ChiNext Index by 24.13%, reflecting a positive market response to recent policies [5]. - Despite a net outflow of over 10 billion yuan from southbound funds on August 28, the overall trend indicates capital inflow into the domestic market [5]. Future Outlook - Analysts predict that the yuan may break the 7.00 level against the dollar by year-end, supported by reduced demand for dollars and increased demand for yuan [2][8]. - The current market conditions show approximately $350 billion in pending currency conversion, which could further support the yuan's appreciation [8]. Regulatory Perspective - The strong setting of the yuan's central parity rate suggests regulatory support for a stronger yuan, which could enhance domestic consumption and positively impact the A-share market [7][8].

Group 1 - The central parity rate of the RMB against the USD increased by 45 points to 7.1063, marking the highest appreciation since November 6, 2024 [2] Group 2 - The probability of the Federal Reserve lowering interest rates by 25 basis points in September is 88.7%, while the probability of maintaining rates is 11.3% [4] - The likelihood of the Federal Reserve keeping rates unchanged in October is 5.5%, with a cumulative probability of a 25 basis point cut at 49% and a 50 basis point cut at 45.5% [4]

Core Viewpoint - The recent fluctuations in the RMB to USD exchange rate reflect a combination of global economic uncertainties, domestic economic data volatility, and complex international trade dynamics [4][5]. Group 1: Exchange Rate Dynamics - The official midpoint rate for RMB against USD was reported at 7.1321, while the onshore RMB fell below 7.18, reaching 7.1802, and the offshore RMB was at 7.1828 [2]. - The decline in the onshore RMB by 32 basis points and the offshore RMB by 8 basis points indicates a cautious market sentiment, with investors closely monitoring economic data and policy developments [5]. Group 2: Impact on Trade and Businesses - For export companies, a weaker RMB can enhance competitiveness as foreign clients can purchase more Chinese goods for fewer dollars, potentially boosting sales [8]. - Conversely, import companies face increased costs as they need to spend more RMB to acquire USD for payments, raising operational expenses [8]. Group 3: Future Outlook - Future exchange rate movements are influenced by key indicators such as the People's Bank of China's monetary policy, significant domestic and international economic data releases, and changes in international trade patterns [9]. - Investors are advised to focus on scientific asset allocation and risk diversification rather than attempting to predict exchange rate fluctuations [9].

Core Viewpoint - The central point of the article is the adjustment of the Chinese Yuan (CNY) against the US Dollar (USD), with the mid-price reported at 7.1161, reflecting an increase of 160 points from the previous trading day's mid-price of 7.1321 [1]. Summary by Relevant Sections - **Exchange Rate Movement** - The CNY mid-price against the USD is reported at 7.1161, which is an increase of 160 points from the previous day's mid-price of 7.1321 [1]. - The official closing price from the previous trading day was 7.1805, and the night session closing price was 7.1666 [1].