China has conditions to maintain yuan stability: Regulator
'From a policy perspective, China has accumulated rich experiences in counter-cyclical adjustments in the foreign exchange market and has ample reserves of policy tools,' Li said.
He added that the regulator's ability to 'prevent and resolve external shocks and risks' had been enhanced. 'We have the confidence and ability to continue to maintain the stable operation of the foreign exchange market,' he said. Overseas investors in general have increased their net holdings of onshore equities and bonds in the second quarter of this year, Li told a press conference in Beijing.
He added that supply and demand in the foreign exchange market were basically stable.
China's yuan has strengthened about 1.7 percent against the US dollar so far this year. Chinese businesses and investors expect the yuan to remain steady in the near term, a rise in currency swaps and growing foreign exchange deposits suggest they are expecting the yuan to depreciate as US trade tensions drag on. China reported slightly better-than-expected second-quarter gross domestic product (GDP) data last week, though analysts warn that weak demand at home and rising global trade risks will ramp up pressure on Beijing to roll out more stimulus. The 90-day tariff truce agreed by Washington and Beijing during trade talks in Switzerland is due to end on August 12. Official data on Tuesday showed that foreign investors sold China's onshore yuan bonds for the second consecutive month in June.
Meanwhile, China's outstanding property loans rose to a two-year high in June, central bank data showed on Tuesday, following a series of policy measures aimed at stabilizing the sector. China's outstanding property loans stood at 53.33 trillion yuan ($7.43 trillion) at the end of June, up 0.4 percent from the same time the previous year, the central bank said in a statement.
Growth accelerated from 0.04 percent in March, reaching the highest level since June 2023, according to central bank data. But growth remains modest, dwarfed by the double-digit increases seen before 2021. Outstanding individual mortgage loans came in at 37.74 trillion yuan, down 0.1 percent year-on-year, while outstanding property development loans rose 0.3 percent on the year to 13.81 trillion yuan, the central bank said. Beijing has rolled out multiple rounds of policy measures in recent years to support the property sector, including allowing debt-laden developers to sell housing inventories and undeveloped land to local governments. — Reuters
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