SEB: Risks Rising For Need To Start Fed Tapering Timetable Soon

The video discusses the current state of US-China trade talks, highlighting a more constructive approach. Despite a hawkish US stance, the market has already priced this in. The renminbi is expected to gain, driven by factors like the southbound bond connect and significant dividend payments by Hong Kong-listed Chinese companies. The dollar-yuan rate is projected to move towards 6.20 by year-end, supported by strong capital inflows into Chinese equities and bonds. However, recent policy tweaks by the PBOC have only temporarily affected the yuan's appreciation, with historical trends suggesting a return to its upward trajectory.

What are the implications of the upcoming bond inclusion process for the renminbi?

What historical context is provided regarding policy tweaks and their effects on the yuan?