17:27 - 26.05.2025

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May 26, Fineko/abc.az. Chinese stocks will benefit from a further rise in the yuan, which is showing resilience amid the trade war between China and the U.S., ABC.AZ reports, referring to Goldman Sachs Group Inc.

Each 1% appreciation of the yuan against the dollar can increase the value of Chinese stocks by 3% due to factors such as improved corporate earnings prospects and increased foreign capital inflows. Earlier this month, the bank raised its forecast for the yuan exchange rate for 12 months to 7 per dollar from 7.35.

The MSCI China index regained its position after President Donald Trump imposed tariffs on April 2, and the three-month trade truce with the U.S. helped the market recover. Chinese assets have generally benefited from diversification away from U.S. markets amid concerns about tariffs and tax cuts by Trump.