The offshore yuan depreciated to around 6.80 per dollar on Tuesday, extending losses from the previous session and hitting a one-week low as investors weighed the latest outlook for China's economy.
The World Bank projected China's economic growth to slow to 4.4% in 2026 and 4.3% in 2027, citing a prolonged property market downturn and subdued consumer spending.
Meanwhile, the government also set its 2026 GDP growth target at 4.5%–5.0%, the lowest since 1991 and the first downward revision since 2023, after maintaining a target of around 5% over the previous three years.
Separately, the PBoC announced measures to strengthen Hong Kong's role as an offshore yuan hub.
These include more than doubling the RMB Business Facility to 500 billion yuan, raising the annual Southbound Bond Connect quota to 800 billion yuan from 500 billion yuan, and pledging support for more yuan-denominated commodity products following the launch of a new gold clearing system in Hong Kong backed by major banks.