From Bloomberg Business: ""[China's] central bank has room to cut interest rates further and has an ever-expanding tool kit to stoke demand. The country’s $3.69 trillion of foreign-exchange reserves and relatively low national government debt levels mean it has the ammunition for fiscal stimulus..."
"Oxford Economics estimates that a currency depreciation of 10 percent to 15 percent would be needed to return monetary conditions to where they were six to 12 months ago. The yuan is up about 13 percent on a real trade weighted basis over the past year."
"The challenge for China is that it wants the yuan to be accepted by the International Monetary Fund into its basket of reserve currencies, so it must avoid intervening too aggressively. A weakening currency could also trigger capital outflows."