The offshore yuan weakened beyond 6.92 per dollar on Wednesday, its fourth straight session of losses, as a stronger US dollar continued to exert pressure on the currency. The greenback advanced, consolidating its status as the preferred safe-haven asset amid escalating tensions in the Middle East.
On the domestic front, official data showed the composite PMI slipped to 49.5 in February 2026, its lowest level in more than three years, with both manufacturing and services activity remaining below the 50-point threshold that separates expansion from contraction. In contrast, a private survey indicated that the composite PMI climbed to 52.1, a near three-year high for the same month, supported by sustained growth in both manufacturing and services.
At the same time, investor focus has shifted to the annual “Two Sessions” meetings in Beijing—the National People’s Congress and the Chinese People’s Political Consultative Conference—where policymakers are expected to place particular emphasis on economic policy, technological advancement, and defense.
