On July 20, the offshore yuan rose against US dollar since 15:20, Beijing time, as of now it strengthened 260 basis point to 6.6849 against the greenback.

The onshore yuan strengthened 175 basis points to 6.6849 against the US dollar.

This is already the second day of yuan's continued appreciation.

The research team at ANBOUND Consulting is of the view that the world economic outlook will remain gloomy in the near future and judging from the macro background, China should be prepared for long-term sluggish external markets.

China should take advantage of the size of its domestic market and maintain its image as a "secured and stable market" through policy adjustments.

This in turn will influence the yuan exchange rate, the capital flow, greenfield investment and other sectors, thereby creating a relative stable and more favorable environment for China’s economic development in the coming years.

To this end, China needs stability, both in its yuan policy and macroeconomic policy, not fluctuation!