Chinese policy makers have been saying since February that two-way swings in the yuan are the “new norm.” A surprise surge in the currency shows that they mean it.
China’s stocks rose, sending the benchmark index to its biggest two-day gain since November, amid speculation the government will take further steps to bolster the economy after a manufacturing index unexpectedly fell.
China’s stocks fell from a two-month high as a bigger-than-estimated decline in a manufacturing gauge overshadowed China Petroleum & Chemical Corp.’s plan to open a unit to private investors.
China’s stocks fell as coal companies slumped after Shanghai reported record-high levels of pollution, while financial shares slid before trade data this weekend. Environmental-protection stocks rose.
China’s third-quarter economic growth may “surprise on the upside,” with gross domestic product rising 9.7 percent from year-ago levels, according to Barclays Plc.
"Weaker August flash PMI points to a fragile recovery and more easing."
- Jian Chang on Aug 20, 2014