This helps explain why the yuan remains under sustained downward pressure, languishing around the weakest level of the year against the dollar near the key 7.30 level. A break below that will take the yuan into territory not recorded since late 2007.
Staying in China, a raft of top-tier companies this week release corporate earnings reports, including conglomerate CITIC, financials Bank of China and ICBC, and beleaguered property developer Country Garden.
Fellow real estate developer China Resources Land publishes half-year results on Tuesday, while Evergrande shares trade for a second day after Monday’s long-awaited reopening. The firm’s shares are virtually worthless.
U.S. Commerce Secretary Gina Raimondo continues her visit to China, with investors watching closely how she treads the line between strengthening economic ties between the two countries and raising concerns over what Washington deems unfair business practices in a number of sectors.
Elsewhere in ‘business meets politics’, Terry Gou, the billionaire founder of major Apple supplier Foxconn, on Monday announced a bid to be Taiwan’s president in January elections, saying he wanted to unite the opposition and ensure the island did not become “the next Ukraine.”
