PBoC's new RMB  fix factor - UOB

Chinese markets reopened after two days of holidays. 

Key Quotes:

"It was the first trading day since the PBOC announced the tweaking of the USD/CNY central parity mechanism last Friday."

"We think that the new “counter-cyclical adjustment” factor could have been in use for some weeks, judging from the widened gap between market prices and the daily central parity settings in May."

"The new factor is expected to give the PBOC more flexibility to stabilize the RMB. At the very least, we think the latest tweak should improve sentiments on the RMB, both onshore and offshore."