Yuan Should Be Avoided for Now, UBS Wealth's Tan Says

The transcript discusses the People's Bank of China's (PBOC) response to the yuan's depreciation amid US-China trade tensions. It highlights the external pressures on the yuan, market reactions, and the potential impact of US midterm elections. The PBOC's use of various policy levers, including fiscal and monetary measures, is examined, with a focus on avoiding excessive currency devaluation. The discussion advises caution in CNY exposure due to ongoing trade discussions and market volatility.

What factors are contributing to the weakness of the yuan according to the text?

How does the PBOC's actions relate to the external selling pressure on the yuan?

What is the significance of the US-China trade tensions in the context of the yuan's performance?

What are the potential implications of the US midterm elections on US-China negotiations?

In what ways is the Chinese government attempting to cushion economic growth?