Fitch: Free-floating Yuan could be positive for China's credit rating

In an interview with Reuters, Andrew Fennell, a director in Fitch’s sovereign ratings arm, said that a more flexible Yuan could serve credit positive for China’s sovereign credit rating.

Fennell said: “In fact, to the extent that moves are orderly and do not destabilize currency expectations or precipitate capital outflows, greater currency flexibility could even be viewed as positive from a credit perspective.”

The comments are unlikely to have virtually no impact on the CNY trades, as it is mainly driven by the sentiment around the US-China trade dispute.

The offshore Chinese Yuan staged a solid rebound from record lows against the US dollar, which triggered a risk-on rally across the financial markets this Tuesday.