China’s Yuan Is 25% Undervalued on Trade Basis, Goldman Says

Goldman Sachs Group Inc. says the yuan is 25% undervalued and will appreciate more than forwards contracts are pricing for 2026.

Calling the Chinese currency one of its “highest conviction” trades, the Wall Street bank said the yuan is undervalued according to models that project an optimal exchange rate needed to sustain the nation’s economic fundamentals, including a steady current-account balance and growth with stable prices.