Renminbi exchange rate to increase: report

Interest rates in China’s bond and loan markets will tend to the downside in the second half of the year, while the renminbi exchange rate is set to increase modestly over the same period, according to an article published in the 21st Century Business Herald on Friday.

Loan rates will continue to go down. The writers predicted the weighted average interest rate of general loans for non-financial enterprises and other departments may come in at 5.2-5.4 percent by the end of year, with that of individual housing loans standing at 5.1-5.3 percent.

The renminbi is expected to appreciate slightly against the US dollar in the short run, whereas the likelihood for the renminbi versus the greenback to break the level of seven will significantly fall during the second half of the year, the writers said.