31.10.202505:51:35UTC+00Offshore Yuan Holds Decline

The offshore yuan continued to decline, hovering around 7.11 per dollar on Friday, as investors digested underwhelming PMI data and the implications of the recent meeting between President Trump and President Xi. China's manufacturing PMI dropped to a six-month low of 49 in October 2025, indicating persistent challenges in the industrial sector and boosting expectations for further economic stimulus to bolster domestic demand. In contrast, the services PMI stayed near a ten-month low of 50, highlighting weak economic momentum amid ongoing property market difficulties and global trade challenges. On the trade front, the United States and China agreed to extend their temporary trade truce for another year. This agreement includes the US halting the "50% rule" on export controls and China lifting restrictions on rare earth exports. Nevertheless, China's summary of the discussions lacked detail, indicating that both nations must further refine and finalize the agreements, leaving several issues unresolved. Despite these developments, the yuan is projected to record gains for the month.