BTP TECHS: (H6) Short-Term Trendline Support Remains Intact

The yuan will continue to appreciate against the U.S. dollar amid strong willingness for Chinese exporters to settle foreign exchange, but regulators will remain cautious towards any large-scale or rapid cross-border capital flows, Securities Times reported. The People’s Bank of China is guiding expectations through the central parity rate, while also influencing the speed of inflows by reducing the discount rate in the swap market, the newspaper said. The yuan is expected to appreciate to 6.7 against the dollar by end-2026, and further to 6.5 by end-2027, the Times said, citing Xiong Yi, chief China economist at Deutsche Bank. 

Local authorities are expected to further stimulate housing demand in 2026, as top policymakers urged city governments to make full use of their autonomy to adjust housing policies in a timely manner, The Paper reported, following the conclusion of the National Housing and Urban-Rural Development Work Conference in Beijing. Local-level specific measures such as clearing up restrictive measures, increasing home purchase subsidies, and enhancing the loan support from housing provident funds are expected, the newspaper said, citing analysts from China Index Academy. 

State-owned enterprises (SOEs) directly administered by the central government are urged to strengthen quality and the management of the market capitalisation of listed companies, while promoting strategic restructuring and high-quality mergers and acquisitions, cls.cn reported, citing Zhang Yuzhuo, director of the State-owned Assets Supervision and Administration Commission. Zhang said state-owned capital should be focussed in key areas such as new energy, electric vehicles, new materials, aerospace, low-altitude economy, quantum technology, and 6G.