HONG KONG: China’s yuan edged up slightly on Tuesday against the US dollar as investors shrugged off weak China loan data and looked to an eventual economic recovery as COVID-19 curbs are eased further.
Data released on Monday showed that new bank lending in November rebounded less than expected, totalling 1.21 trillion yuan ($173.38 billion), short of analysts’ consensus forecast of 1.35 trillion yuan.
“We believe credit demand will likely remain fragile over the next few months, as China goes through the temporary shocks at the early stages of reopening,” said Helen Qiao, China and Asia economist at Bank of America, in a report Tuesday.
But credit demand should rebound after the first quarter of 2023 as consumer spending and the property market gradually recover, Qiao said.
The spot yuan opened at 6.9856 per dollar and was changing hands at 6.9770 at midday, 9 pips strong than the previous late session close, and 0.03% away from the midpoint.
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