Yuan seen strengthening to 6.7 by end-2018 - HSBC

Fan Cheuk Wan, Head of Investment Strategy and Advisory for Asia at HSBC, expressed her take on the Chinese Yuan in the coming months, in an interview with CNBC's "Squawk Box" on Thursday.

Key Quotes:

“The Chinese Yuan, which has weakened by around 5 percent against the U.S. dollar this year, will likely stabilize on a slightly stronger footing than current levels, from now until the end of the year, 

The Chinese currency is expected to hit 6.7 Yuan per U.S. dollar by the end of the year

Currently, the market is very much driven by negative sentiment induced by concerns about trade tensions ... We think that the market is currently projecting a pretty pessimistic scenario.

Of course, we'll need to take into account potential downside risks of further deterioration in the trade tensions," adding that the escalation in the trade conflict with the U.S. actually gives China greater incentive to stimulate domestic demand for growth.

"Given that domestic demand contributes more than 90 percent of China's GDP growth, domestic demand growth would hold key to financial and economic stability in the second half of the year.”