Currency expected to be on the higher side in second half

The yuan is expected to be on the higher side in the second half of 2017 as China's capital outflows reduce and optimism grows over the nation's economic growth, said a senior US economist.

"As Chinese companies have fewer outbound mergers and acquisitions this year, capital outflows are also lower," said Pippa Malmgren, a US economist who served as an advisor to former US President George W. Bush on economic policy and financial markets.

"In the first and the second quarters, China's GDP grew at a respectable rate of 6.9 percent year-on-year, beating expectations."