Expectations of yuan appreciation are strengthening as the Fed's rate cut approaches, said Stephen Jen, chief executive of British hedge fund EurizonSLy capital, adding that Chinese companies may sell $1 trillion in dollar-denominated assets as the U.S. cuts interest rates, a move that could strengthen the yuan by as much as 10 percent. He argued that when the Fed cuts interest rates, the attractiveness of dollar-denominated assets will be eroded and could spur the return of $1 trillion (7.1 trillion yuan) in “bailout” funds as the interest rate gap between China and the US narrows. Following the Fed Chairman Powell issued the strongest rate cut signal, the Fed in September to start cutting interest rates is almost certain events. Local time on August 26, San Francisco Fed President Daley said the Fed is time to start cutting interest rates, adjust the policy has come, it is difficult to imagine that the September meeting will be unexpected.