The Chinese yuan depreciated vis-à-vis the U.S. dollar last week as the greenback closed at CNY 7.4030 in the over-the-counter market, up from CNY 7.4000. Japan called on the fastest possible appreciation of the yuan. The U.S. – China Strategic Economic Dialogue reconvenes on 12 December. Final 2007 GDP and CPI are seen around 11.6% and 4.5%, respectively. PBoC will implement a tighter monetary policy in 2008.

Data released in China last week saw the CLSA November PMI survey decline to 52.8 while the CFLP November PMI survey improved to 55.4.