Shorting Yuan Probably a Good Trade in Medium Term: Pendal Group

The transcript discusses the People's Bank of China's (PBOC) strategies to defend the yuan, focusing on verbal interventions and psychological levels like 7.0. It explores market forces, speculation, and the potential for shorting the yuan as a trade strategy. The impact of US tariffs on the yuan's valuation and the Chinese economy is also analyzed, with predictions on fair value under different scenarios.

What factors make it difficult to defend the yuan at the seven level?

How does the current economic environment affect the PBOC's ability to intervene in the yuan's valuation?

In what ways has a weaker yuan benefited China amidst US tariffs?

What is the significance of the 7.25 level in relation to the yuan's fair value?

What could be the potential impact on the yuan if all Chinese imports to the US were tariffed at 25%?