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CCTV Script 27/10/16

This is the script of CNBC's news report for China's CCTV on October 27, Thursday.

Welcome to CNBC Business Daily, I'm Qian Chen.

Recent depreciation in CNY has made the Chinese currency fall to six-year lows against the dollar, but markets have been reacting with a shrug.

For the past 30 days, the yuan has declined around 1.5% versus the dollar, while the yuan has gained against other major currencies like the euro and yen -- 1.6% and 2.4% respectively.

That contrast signaled to some traders the yuan's declines were more about dollar strength than yuan weakness.

Now, markets are seeing a higher probability of a rate hike by the FED in December.

The futures market shows a more than 74% chance of hiking 25 basis points or more.

[STEVE BRICE, Standard Chartered Wealth Management Group, Chief Investment Strategist] "Our view is basically when the dollar is strong, they'll allow the currency to trade water on the basket, which means dollar/CNY edges higher, when the dollar is weak, they will allow the CNY trade to weaken. So basically they want to weaken CNY."

The weaker yuan and relative calm among investors are good news for China's central bank.

A falling currency makes Chinese exports more competitive and could boost an economy struggling with slowing growth.

At the same time, the currency's retreat, gradual this time, hasn't rattled investors who tend to respond more to large, sudden moves.

[STEVE BRICE, Standard Chartered Wealth Management Group, Chief Investment Strategist] "That was partially because of lack of clear communication ... at least in the short term."

Markets are watching closely FOMC meetings in November and December, as stronger dollar might bring more depreciation pressure to the CNY.

CNBC Qian Chen, reporting from Singapore.

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