China’s Securities Regulator: Overseas demand for Yuan assets explains Yuan’s strength

Reuters reported comments delivered by China’s Securities Regulator, delivered earlier today, with the key points found below.

Says working toward a mechanism to help increase MCSI inclusion factor to 15 pct from 5 pct.

Overseas investors have an obvious tendency to hold Yuan assets.

This explains Yuan’s strength against the backdrop of weakness in some other currencies.

Cannot rule out the possibility that China's firms rush to export in anticipation of a trade war with the US.