Economy still strong despite yuan's fall

The yuan's continued depreciation against the US dollar since September has aroused concerns about possible capital flight from China, especially because the country's foreign investment in the non-financial sector surged by more than 53 percent year-on-year to reach $145.96 billion in the first three quarters of this year. The figure for the whole of last year was about $121.4 billion.

In response, the Chinese government, as confirmed by officials of the People's Bank of China, the National Development and Reform Commission and other government departments, will more tightly scrutinize overseas investments while implementing the "Go Out" strategy.

Observers and investors, however, need not worry, nor should they fall victim to speculations. The truth is that the yuan is still stable in the global monetary market and will continue to be so. The recent depreciation is a natural market response to a stronger US dollar after Donald Trump's election as the next US president and the possibility of the US Federal Reserve increasing interest rates.