The People’s Bank of China will issue central bank bills in Hong Kong next week, a tool that is typically used to stabilize the yuan’s exchange rate in the offshore market.

China expanded its support for the beleaguered yuan with a plan to issue a record amount of bills in the Hong Kong market to mop up excess liquidity.

An exchange rate of 7.6 to the US dollar by the end of 2025 could be on the cards, analysts say, as Donald Trump’s impending policies may further weaken the battered yuan.

China's consumer inflation slowed in December, leading to modest annual price gains for 2024 while factory-gate deflation extended into a second year, amid sputtering economic demand. A combination of job insecurity,

China’s consumer inflation weakened further toward zero, decelerating for a fourth straight month in a setback for government efforts to stamp out deflation and revive demand by injecting stimulus into the economy.