The offshore yuan steadied around 7.16 per dollar on Thursday as investors digested the latest PMI data. The Caixin China General Composite PMI returned to expansionary territory, reaching its strongest level since March, primarily driven by a renewed increase in manufacturing activity that offset a slowdown in the services sector, which fell to a nine-month low.
Earlier in the week, official PMI figures painted a slightly different picture: the manufacturing PMI remained in contraction, though it hinted at gradual improvement, while the non-manufacturing PMI rose marginally amid China’s ongoing efforts to stimulate domestic demand and bolster the sluggish economy. Investors are now turning their attention to a fresh wave of economic indicators due next week, particularly inflation figures and trade data. Meanwhile, attention is turning to this month’s Politburo meeting, where investors expect new stimulus measures amid mounting challenges such as the looming US tariffs.
