Eurizon’s Jen Sees Chinese Yuan Rallying by Record 9% This Year

A top investment strategist predicts China’s yuan could surge by a historic 9% this year, marking its largest annual gain ever, as authorities seek to stabilize the currency amid economic pressures. Stephen Jen, CIO of Eurizon SLJ Capital, attributes the potential rally to Beijing’s deliberate policy shift aimed at restoring global confidence in the yuan after prolonged depreciation. The appreciation would strengthen Chinese firms’ overseas purchasing power, reducing import costs and supporting corporate expansion abroad amid sluggish domestic demand. Analysts note the move aligns with China’s broader push to internationalize the yuan, countering capital outflows and reinforcing its role in global trade settlements. If realized, the rally would reverse years of decline, signaling a strategic pivot in China’s currency management amid geopolitical and economic headwinds.