The People’s Bank of China has signaled a possible weakening of the yuan as USD CNH approaches a critical resistance level. Following a sharp dive in the Shanghai Composite Index by around 9%, China’s state fund manager has taken action to boost holdings in stock market index funds. This development underscores the ongoing economic adjustments in China and may have broader implications for the currency and equity markets. Investors should remain alert to these shifts in policy and market sentiment as they unfold.