State-Owned Chinese Banks Allegedly Purchasing Dollars to Stabilize Rising Yuan
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 04 2025
0mins
Source: InvestingliveForex
Dollar Buying by State Banks: China's major state-owned banks have been purchasing dollars in the onshore market to manage the rapid appreciation of the yuan, a move that is unusual for the Chinese market.
Impact on Yuan Gains: The actions taken by the banks aim to moderate the pace of yuan gains rather than reversing the upward trend against the dollar.
Yuan's Performance: The yuan has appreciated over 3% against the dollar year-to-date, marking its largest yearly increase since 2020.
Current Exchange Rates: The USD/CNY exchange rate recently fell below 7.10, approaching 7.06, before slightly bouncing back to 7.07, indicating the yuan's weakest levels since October of the previous year.
Analyst Views on CNH
Wall Street analysts forecast CNH stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CNH is 12.23 USD with a low forecast of 9.50 USD and a high forecast of 16.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
13 Analyst Rating
8 Buy
4 Hold
1 Sell
Moderate Buy
Current: 11.050
Low
9.50
Averages
12.23
High
16.00
Current: 11.050
Low
9.50
Averages
12.23
High
16.00
About CNH
CNH Industrial N.V. is an equipment and services company. The Company is engaged in the design, production, marketing, sale, and financing of agricultural and construction equipment. It operates through three segments: Agriculture, Construction and Financial Services. Its Agriculture segment designs, manufactures, and distributes a full line of farm machinery and implements, including two-wheel and four-wheel drive tractors, crawler tractors, combines, grape and sugar cane harvesters, hay and forage equipment, planting and seeding equipment, material handling equipment, and others. Its Construction segment designs, manufactures, and distributes a full line of construction equipment, including excavators, crawler dozers, graders, wheel loaders, backhoe loaders, skid steer loaders, and compact track loaders. Its Financial Services segment offers retail note and lease financing to end-use customers for the purchase of new and used agricultural and construction equipment and components.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
