It is the first time I’ve ever seen the Chinese central bank directly use its own money to support the stock and real estate markets,” says Lu Xi, an assistant professor focusing on China’s economics at the National University of Singapore.

China's yuan hit a 16-month high against the U.S. dollar on Tuesday, after the central bank of the world's second-largest economy revealed new stimulus measures, while the greenback extended declines against other major currencies after soft data on the consumer.

China’s yuan surged to its strongest level in over 16 months on Wednesday as investors reacted to a series of stimulus measures unveiled by Beijing to combat the country’s economic slowdown. The offshore yuan briefly strengthened to 7.