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Six key areas to watch on China's economy 2017

Xinhua | Updated: 2017-01-04 06:48

RMB plunge unlikely

Six key areas to watch on China's economy 2017

A clerk counts yuan bank notes and US dollar bills at a branch of the Industrial and Commercial Bank of China in Huaibei, East China's Anhui province, Nov 28, 2012. [Photo/IC]

The Chinese renminbi (RMB), or the yuan, has seen sharp falls since October, stoking market concerns. But economists ruled out the possibility of persistent slips in 2017, and believe China is capable of handling the impact, even if bigger-than-expected exchange rate changes occur.

There is no precedent for a country with the world's largest current account surplus, a leading GDP growth rate, abundant foreign exchange reserves and capital restrictions to see substantial depreciation of its currency, Yu said.

China's steady economic advance determines RMB will remain strong against other currencies, Zhang said, and considers recent weakness a correction of previous over-valuation. He expects RMB to end the losing streak by the end of the first half of 2017.

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