China will not do a one-off large devaluation of the renminbi or yuan, but policymakers could still weaken the currency by stealth, analysts told CNBC on Thursday.
Ever since Beijing surprised the world by unexpectedly depreciating the renminbi in August, money managers such as Kyle Bass, David Tepper and Bill Ackman have ramped up bearish bets against the yuan.
Concerns that the currency could fall sharply have been exacerbated by funds flowing out of the mainland, with China's foreign-exchange reserves falling to $3.20 trillion at the end of February, dropping from $3.23 trillion the previous month. That followed $100 billion per month in average currency outflows during November, December and January.
Some analysts, however, are skeptical of expectations for a big one-off drop for the currency.
For one, Chinese Premier Li Keqiang said earlier Thursday at the Boao Forum for Asia in China's Hainan province that the country will not devalue its currency to boost exports, according to a Reuters translation.