China’s Once-Wild Markets Turn Tame With Stocks, Currency Steady
- Shanghai Composite, yuan trade near 60-day moving averages
- Suspected intervention by authorities keeping assets stable
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China’s stocks and currency are going nowhere amid speculation the authorities are seeking to maintain stability in the nation’s financial markets before a string of key events.
The Shanghai Composite Index and the yuan are trading near their average level for the past two months, while volatility in both has fallen to the lowest since at least February. Wednesday sees highly anticipated decisions by central banks in Japan and the U.S., the yuan will join the International Monetary Fund’s basket of reserve currencies on Oct. 1, and public holidays will shutter China’s markets for the whole first week of October.