China guided its yuan currency higher on Monday, and offshore it surged against the dollar, spurred by what traders called aggressive intervention by Beijing, although Chinese stocks tumbled again as doubts persisted over policymakers’ intent.

Perceived mis-steps by China’s authorities have stoked concerns in global markets that Beijing might lose its grip on economic policy, even as the country looks set to post its slowest growth in 25 years.

A 1.5 per cent depreciation in the yuan since the start of 2016, following a 4.7 per cent weakening in 2015, had raised alarm among some trade rivals that China was risking a “currency war” of competitive devaluations.

The yuan’s rally could help temper those fears, but it failed to stop investors selling Chinese shares.– (Reuters)