The recent depreciation of the yuan against the US dollar has created anxiety in China. But it largely reflects a strong US dollar driven by investor expectations about higher US interest rates.

The pressure has increased after Donald Trump's election as the next US president. Markets are betting on wider fiscal deficits, stronger growth and higher inflation in the US - the latter in part because of more protectionism.

However, the yuan has actually depreciated less against the US dollar than other major currencies. As a result, China's trade-weighted, effective exchange rate has remained broadly constant in recent months.