There are opinions saying that the Chinese government will not let RMB depreciate further as the government will not rely on exports only to support the economy (Remember China has a growing domestic market!) Furthermore, this can lead to capital outflow from China, and depreciation of other Asian currencies. This view is supported by JP Morgan chief China economist Frank Gong and Director of Institute of World Economics and Politics, Chinese Academy of Social Sciences (CASS) Yu Yong Ding.
Their views seem to be right with the RMB stabilizing in the past few days.
