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USD/CNY rose 0.1% as sentiment towards China deteriorated after another major developer – in this case Agile Group Holdings Ltd (HK: 3383) – defaulted on bond payments.
The default largely offset optimism about improving inflation in China, as well as Beijing’s recent unveiling of plans for a large-scale bond issue of 1 trillion yuan ($138 billion).
The prolonged downturn in the real estate market has become a key factor weighing on the Chinese economy, despite Beijing’s repeated attempts to support the sector. Over the past two weeks, restrictions on home purchases have been eased in a number of major Chinese cities.
