Yuan rebalancing signals reform urgency

CHINA intends to see its strategy to bring about a two-reserve currency world built around the dollar and the yuan through to completion.

Chinese financial market volatility and policy uncertainty in the past few weeks likely mark only the beginning of a longer-term trend as China rebalances its continent-sized economy away from investment towards consumption.

The People's Bank of China (PBOC) has made a number of significant interventions, including setting interest rates at a record low, a ban on share sales by major investors to stop the stockmarket rout, and measures to depreciate the currency by loosening the dollar peg.