SEPTEMBERASIA BUSINESS OUTLOOK8According to a former central banker, increased yuan bill sales by China's central bank in Hong Kong this week helped tighten liquidity in the offshore market, helping to stabilise the yuan by making it more expensive for speculators to short the currency. Sheng Songcheng, a former director of the People's Bank of China's (PBOC) statistics and analysis department, made the remarks, according to the state-owned Shanghai Securities News on August 24.Sheng made the observation after the PBOC sold 35 billion yuan ($4.81 billion) worth of bills in Hong Kong on Aug 22, exceeding the 25 billion yuan of the bills coming due this month.The PBOC usually conducted a flat rollover by auctioning the same number of bills as were maturing, because selling more would reduce yuan liquidity in the market.Higher offshore yuan bill sales in Hong Kong "could be related to recent yuan situations," Sheng was quoted as saying, as they would help stabilise foreign exchange market expectations and are regarded as a policy management tool."The yuan exchange rate will not depreciate unilaterally, but will maintain two-way fluctuations," he predicted."In the medium to long term, the yuan exchange rate is supported by solid economic fundamentals." In the long run, China's sound economic fundamentals have not changed. The yuan will remain relatively stable as the economy continues to stabilise, according to Sheng. Binance Labs, the company's venture capital and incubation arm, has invested in Pendle Finance, a DeFi protocol that enables yield tokenization and trading.The investment underscores Binance Labs' commitment to supporting promising projects that will shape the next generation of DeFi primitives, and will allow Pendle Finance to expand their reach across various blockchain ecosystems, providing both retail and institutional users with inclusive access to DeFi yield opportunities, according to a statement released on Aug 23 by Binance Labs.Pendle Finance has developed a number of features that provide greater flexibility for yield management via an intuitive platform, with a special emphasis on inclusivity.Fixed yield, traditionally the backbone of institutional hedging, will be critical to the project's growth, allowing users to access more deterministic yields and optimise accordingly."Binace Labs is always looking for projects that are spearheading innovation in DeFi sectors that will enable access to a wider audience," says Pendle Finance. "Pendle Finance's focus on multi-chain expansion and innovative yield strategies align with our vision for the future of DeFi." We look forward to collaborating with Pendle Finance and supporting their efforts to reshape the DeFi landscape into a more inclusive ecosystem," said Yi He, Co-Founder and Head of Binance Labs.Pendle Finance currently supports 25 different pools across three major blockchain networks: Ethereum, Arbitrum, and BNB Chain. NEWSROOMCHINA CENTRAL BANK STABILISES YUAN BY TIGHTENING LIQUIDITYBINANCE LABS TO INVEST IN PENDLE FINANCE, SEEKS EXPANSION IN BLOCKCHAIN ECOSYSTEMSSEPTEMBERASIA BUSINESS OUTLOOK8
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