China's currency rebounds as optimism returns

Beijing

FOR those who worry about the state of the world economy, China has long been a major reason to lose sleep. Its financial system labours under a mountain of loans, while weaker growth has prompted many Chinese people and companies to move their money overseas in recent years.

China still faces hefty debt and slowing growth. But even some vocal naysayers say the country has found ways to contain its problems - at least for now.

That improving outlook is, in part, reflected in China's currency. The renminbi has surged in value in recent weeks, helped by growing confidence in the country's economic prospects and by a political push for stability.

On Monday, Beijing set the currency's value at its strongest level in nearly a year and a half. While China keeps a firm grip on its value, investor i…