The offshore yuan held near 6.70 per dollar on Wednesday as stronger-than-expected PMI data and new policy support measures bolstered confidence in China’s economic outlook. Official figures showed China’s composite PMI rose to 50.7 in September 2026, its highest reading since December 2025, with both manufacturing (50.1 vs 49.8) and non-manufacturing (50.2 vs 49) returning to expansion territory. A separate private survey painted an even more upbeat picture, with the composite PMI climbing to 52.1 as manufacturing (52.1 vs 51.5) and services (51.6 vs 51.4) remained firmly in expansion.
The latest data came as policymakers introduced fresh stimulus, including mortgage subsidies and expanded central bank funding support, while the State Council pledged “a package of practical and effective additional policies.” Still, despite resilient exports and an AI-driven lift to industrial profits, China’s economy continues to face headwinds from subdued consumer spending, a prolonged property slump, and weak business confidence.
