Offshore Yuan Holds Gains

The offshore yuan hovered around 6.70 per dollar on Wednesday as upbeat PMI data and fresh policy support strengthened confidence in China's economic outlook. Official data showed China's Composite PMI rose to 50.7 in September 2026, its highest level since December 2025, as both manufacturing (50.1 vs 49.8) and non-manufacturing (50.2 vs 49) returned to expansion territory. Meanwhile, a private survey showed the Composite PMI climbed to 52.1, with both manufacturing (52.1 vs 51.5) and services (51.6 vs 51.4) continuing to expand. The latest readings came as policymakers rolled out fresh stimulus measures, including mortgage subsidies and expanded central bank funding support, while the State Council also pledged "a package of practical and effective additional policies." Despite resilient exports and an AI-driven boost to industrial profits, China's economy remains under pressure from sluggish consumer spending, a prolonged property downturn, and weak business confidence.