Nevertheless, the yuan’s performance has Goldman Sachs betting on Chinese stocks benefiting from further yuan gains. “Chinese stocks tend to perform well when the currency rises,” says Goldman Sachs strategist Kinger Lau. The yuan outlook, he adds, lends support to the bank’s “overweight stance” on Chinese stocks. Lau says that every 1% increase in the Chinese currency tends to result in a 3% jump in mainland equities.
onsdag 28. mai 2025
The case for a stronger Chinese yuan
The uptick in the yuan since Chinese and US trade officials met in Geneva has traders wondering if a currency agreement was struck behind the scenes. Only Chinese Vice Premier He Lifeng, US Treasury Secretary Scott Bessent and their aides know for sure. But the yuan’s recent appreciation flies in the face of an economy experiencing a property crisis fueling deflation and a central bank in easing mode.
Nevertheless, the yuan’s performance has Goldman Sachs betting on Chinese stocks benefiting from further yuan gains. “Chinese stocks tend to perform well when the currency rises,” says Goldman Sachs strategist Kinger Lau. The yuan outlook, he adds, lends support to the bank’s “overweight stance” on Chinese stocks. Lau says that every 1% increase in the Chinese currency tends to result in a 3% jump in mainland equities.
Nevertheless, the yuan’s performance has Goldman Sachs betting on Chinese stocks benefiting from further yuan gains. “Chinese stocks tend to perform well when the currency rises,” says Goldman Sachs strategist Kinger Lau. The yuan outlook, he adds, lends support to the bank’s “overweight stance” on Chinese stocks. Lau says that every 1% increase in the Chinese currency tends to result in a 3% jump in mainland equities.
