China stats bureau chief said no basis for yuan depreciation

[BEIJING] China's statistics bureau said on Tuesday that there was no basis for yuan depreciation given China's solid economic fundamentals.

Wang Baoan, chief of the National Bureau of Statistics, told a briefing that stronger dollar and downward pressure in China's economy contributed to recent moves in yuan exchange rate.

A sustained depreciation of the yuan exchange rate could fuel capital outflows and affect the pace of yuan internationalisation, Wang said.

Wang said he was confident on China's stock market while the impact from stock market volatility on real economy would be limited.

Chinese shares plunged more than 6 per cent to 14-month lows on Tuesday after oil prices dropped again, reviving concerns about global growth and prompting a sell-off in the world's equity markets.

China's central bank has jolted global financial markets twice in six months by allowing sharp, sudden slides in the yuan, only to step in aggressively to stabilise it.

REUTERS