RMB appreciation, a boost from the "foreign exchange settlement wave"?

Recently, the rapid appreciation of the renminbi has been attributed by the market to the "year-end settlement rush," but the Shenwan Hongyuan report points out that during the fastest appreciation period in October and November, the bank settlement rate actually declined, and multiple market indicators did not show characteristics of a settlement rush. The report believes that the initial phase of this appreciation was mainly guided by the central bank's counter-cyclical adjustment, while recently it has synchronized with the weakening of the US dollar. Although seasonal settlement patterns may still provide support in January, the risk of a US dollar rebound and the central bank's intention to "smooth" the exchange rate may affect the pace at which the renminbi breaks through the "7" level