China yuan fixing estimated at 7.1634, survey demonstrates

China yuan fixing estimated at 7.1634, survey demonstrates

The Chinese Yuan Renminbi (CNY) has been trading at an estimated rate of 7.1634 to the U.S. Dollar (USD) as of June 19, 2025, according to the latest data from the Board of Governors of the Federal Reserve System [1]. This rate is part of the noon buying rates in New York City for cable transfers payable in foreign currencies, which are not seasonally adjusted.

The current exchange rate reflects a stable trend in the Chinese currency, which has been influenced by various economic factors, including the slowdown in China’s dealmaking and geopolitical tensions. Despite these challenges, the Chinese government has been actively encouraging domestic capital to support private equity funds, particularly those denominated in yuan.

Asia-focused investment firm PAG has recently raised 3.1 billion yuan (approximately S$553 million) for its inaugural yuan-denominated buyout fund, surpassing its initial target of 3 billion yuan [2]. This fund, which is managed by veteran dealmaker Shan Weijian, has secured anchor investments from the government of Suzhou and several Chinese insurance companies. The yuan fund will focus on mergers and acquisitions for a controlling stake, combined with structural minority equity investments, and will invest across various sectors including consumer, technology, healthcare, and financial services.

The fundraising comes amid a broader trend of declining overall fundraising in the private equity sector. In 2024, overall fundraising has been on a sharp decline, dropping from US$129 billion in 2021 to US$11 billion in 2024 [2]. Despite this, PAG has been successful in securing commitments from mainland China-based investors, who have committed a total of 814.4 billion yuan of capital to private equity and venture fund managers this year, up 43 percent from the same period in 2024 [2].

The stable exchange rate and the increasing domestic capital support indicate a robust environment for private equity investments in China. The Chinese government’s efforts to encourage domestic capital for private equity funds are likely to continue, providing a favorable backdrop for future investments in the country.

References:
[1] Board of Governors of the Federal Reserve System (US), Chinese Yuan Renminbi to U.S. Dollar Spot Exchange Rate [DEXCHUS], retrieved from FRED, Federal Reserve Bank of St. Louis; https://fred.stlouisfed.org/series/DEXCHUS, .
[2] Business Times, "Investment firm Pag raises 3.1 billion yuan first yuan-denominated buyout fund," retrieved from https://www.businesstimes.com.sg/companies-markets/banking-finance/investment-firm-pag-raises-3-1-billion-yuan-first-yuan-denominated-buyout-fund-sources.