The yuan strengthened, rebounding from its biggest weekly loss in three months, after Finance Minister Lou Jiwei said China is experiencing stable growth and there won’t be major policy adjustments. Lou, currently attending the Group of 20 meeting in Cairns, Australia, said Asia’s largest economy is operating within a reasonable range while facing some downward pressure, according to a statement on the People’s Bank of China website yesterday. The PBOC injected 500 billion yuan ($81 billion) into the nation’s five largest commercial lenders last week using its standing lending facility to help reduce borrowing costs. The currency climbed 0.05 percent to 6.1384 per dollar as of 11:27 a.m. in Shanghai, after weakening 0.11 percent last week, China Foreign Exchange Trade System prices show. The PBOC cut the yuan’s reference rate by 0.05 percent to 6.1485. The onshore yuan was 0.16 percentstronger than the fixing, within the 2 percent limit. “Investors are weighing China’s economic outlook and hoping the government will ease further to steer growth,” said Daniel Chan, a Hong Kong-based analyst at Brilliant and Bright Investment Consultancy Ltd. “The room for yuan appreciation will be limited if tomorrow’s flash PMI signals a further slowdown in manufacturing.” A preliminary reading of a manufacturing Purchasing Managers’ Index was at 50 for September, the median estimate in a Bloomberg News survey shows before HSBC Holdings Plc and Markit Economics release the data tomorrow. That compares with final figures of 50.2 in August and 51.7 in July. In Hong Kong’s offshore market, the yuan gained 0.05 percent to 6.1410 per dollar, taking its five-day advance to 0.44 percent, according to data compiled by Bloomberg. Twelve-month non-deliverable forwards advanced 0.03 percent to 6.2380, 1.6 percent weaker than the Shanghai spot rate. One-month implied volatility in the onshore yuan, a measure of expected swings used to price options, dropped 10 basis points, or 0.1 percentage point, to 1.57 percent. via