(Yicai Global) July 7 -- The offshore Chinese yuan exchange rate against the US dollar broke through the psychologically important threshold of seven in early trading today to reach 6.9918, its strongest level in three months, amid a mainland stock market rally as yuan assets become increasingly attractive to investors.

The onshore exchange rate, which is directly controlled by the central government and less subject to international market forces than the offshore rate, appreciated to as much as 7.0034.

The continued strengthening of the yuan reflects the increased attraction of Chinese assets to foreign investors in the context of a global asset shortage, the Shanghai Securities News reported, citing trader opinion.

Editor: Kim Taylor