On July 19, the trading of offshore yuan began to rise in the afternoon. Since 15.00 p.m., the onshore yuan against US dollar continued to rise.

Previously, many analysts believe that there are growing expectations on continued depreciation of renminbi.

However, many bankers are of the view that the depreciation of renminbi might soon come to an end.

The research team at ANBOUND Consulting has always held the view the key problems that China should guard against are the market expectation of yuan depreciation as well as the rising pressure on capital outflows.

The relevant financial policies should be designed to curb capital outflows.

Now, the market expectation on yuan depreciation has begun to reverse and such changes warrant the attention of the authorities.

The policy makers, in particular, should seize the opportunities arising from the change in market sentiment and step up efforts to further consolidate the international community's confidence of China’s economic prospect which will in turn stabilize the renminbi exchange rate.