Chinese state-owned bank says yuan is likely to drop below 7 within three months

State-owned Bank of Communications International

• yuan likely to drop below 7
• within 3 months
• stock markets in mainland China and Hong Kong are gradually pricing this
• "weakened valuation of the yuan is decided by the recent tough trade environment China is facing"

This … "weakened valuation of the yuan is decided by the recent tough trade environment China is facing" makes sense. Politics is complicating it of course.