The offshore yuan traded flat around 7.12 per dollar on Monday, holding near three-week highs as investors assessed a raft of fresh Chinese economic data. Figures showed the economy slowed for a second straight quarter, expanding at the weakest pace in a year as strong exports partly offset weaker consumer spending and investment. Retail sales growth also moderated and fixed-asset investment posted its first contraction since 2020, underscoring persistent weakness in the property sector. However, industrial production outperformed expectations, highlighting resilience in manufacturing. On the monetary policy front, the People’s Bank of China kept its benchmark lending rates unchanged for a fifth consecutive month, as widely expected, maintaining the one-year and five-year loan prime rates. Markets also took note of easing Sino-US trade tensions, after US President Trump called his proposed tariffs on Chinese goods “not sustainable” as officials prepare for upcoming bilateral talks.
