China gears up to strengthen the Yuan in a world without Donald Trump

Over the past two years, China's currency has been whipsawed by volatile geopolitics, while traditional valuation metrics went to backburner

First, it no longer required banks to set aside cash if clients wanted to short the yuan. This makes betting against the currency cheaper, and allows room for the yuan to weaken. Second, the PBOC removed the so-called counter-cyclical factor, one of the three elements used to determine its daily currency fix, which guides trading. These significant tools were set up in 2015 and 2017 to stem the yuan’s free fall.

Last quarter was the yuan’s best in more than a decade. Now Beijing needs to prevent the currency from strengthening too much, particularly with the increasing odds of a Joe