Citi economists deem China a safe haven amidst global banking stress.
Economists at Citi have said that China is a "relative safe haven" in the face of global banking stress, with the country's growth premium, financial soundness, policy discipline, and new political economy cycle giving it a "hedge" for growth while economies in the US and Europe face heightened risk of financial disruptions. The economists also noted China's government restructuring earlier this month as an example of its efforts to ease financial risks. As China's GDP is expected to show relatively outstanding growth this year, economists also see an upside to its currency, with Citi expecting to see the onshore yuan strengthen to 6.6 against the US dollar as soon as September.