, the Chinese currency steadied around 7.0710 per dollar in afternoon trade after hitting a low of 7.1382 earlier, following Mnuchin's announcement.
The PBOC’s announcement of a sale of 30 billion yuan worth of yuan-denominated bills in Hong Kong also suggested the central bank was soaking up cash to prevent speculative short-selling.finished domestic trading up 0.2% at 7.0321 per dollar. The offshore yuan rebounded more than 1% mid-trade from its record low.
“Renminbi weakening pressure added uncertainty to the stock market and added pressure especially for financials and property companies,” said Linus Yip, chief strategist at First Shanghai Securities in Hong Kong. “We think the most important takeaway is the risk of U.S.-China trade war escalating further has increased,” UBS Economist Tao Wang said in a note to clients.
The fundamental problem is China doesn't spend the fortune it earned wisely. Instead of using the resources to build up advanced manufacturing technologies so money can still be made when land and labor cost increase, money was wasted on real estate can only wait for devaluation.