Quotes from Standard Chartered:
-We have a short-term Neutral and medium-term Overweight FX weighting on the CNY. Given China's subdued growth-inflation mix and evolving BoP dynamics, the CNY is no longer the 'one-way bet' of the past.
-As a result, the hedging patterns of exporters and importers are changing, with ensuing impacts on the onshore FX market. Corporate hedging of overseas FX liabilities and a rise in importer hedging are likely to weigh on the CNY in the near term.
-At some point, importer hedging demand should ebb, allowing external surpluses to play a bigger role in driving FX flows and prompting a mild recovery for the CNY.
