China Trade Figures Show Global Demand Still Strong, SocGen Says

The video discusses the trade balance, highlighting the strength in exports and imports, and questions the impact of tariffs on the Chinese economy. It suggests that global demand remains strong and that the economic fundamentals are stable. The discussion then shifts to the yuan and FX reserves, analyzing market reactions and the role of the PBOC in managing volatility. The market is expected to test the yuan's limits, but the PBOC has been effective in maintaining control and minimizing volatility in both equity and interest rate markets.

What role does the PBOC play in managing market volatility according to the discussion?

What are the potential long-term pressures on the yuan as mentioned in the text?